AirXpanders, Inc. (ASX: AXP) is a healthcare company engaged in the development of the AeroForm® Tissue Expander System. The company provides design, manufacturing, sale and distribution for the device.
In an announcement made on 9 May 2019, the company appointed Cowen Inc. as a financial advisor to assist in financial and strategic alternatives. Cowen would continue to evaluate and explore opportunities for a wide range of financial and strategic decisions including a capital raise. Capital thus raised will allow AirXpanders to serve constituencies, patients, physicians and improve the stockholder value.
Cowen Inc. is a financial services firm based in New York, USA, operating in two segments – as a brokerage dealer and as investment management services. Brokers dealer segment provides investment banking services, prime brokerage, equity research, credit research, capital raising and global clearing. Investment management segment offers actively managed investment products. The firm focuses on delivering value-added solutions to its clients.
U.S. FDA (Federal Drug Administration), granted de nova marketing authorisation to AeroForm® in the year 2016 and the U.S. market clearance in 2017. In the year 2012, AeroForm® was given its first CE mark for Europe and currently possesses a license to sell in Australia.
During late March 2019, the stock was placed in a trading halt as requested by the company. As per the company announcement, the suspension was requested due to the breach of few financial covenants in its debt agreement with lenders. Further, in April, the period of halt was extended by the company. The company is assessing capital raising discussions and operational review due to the debt covenant breach caused by revenue shortfall. The expected revenue by the company for the first quarter of 2019 to be in the range of US$1.65 million to US$1.75 million which is consequential to breach of financial covenant.
AXP released its annual report in April for the year ended December 2018. Revenues soared up to US$7.8 million in 2018 from US$3.9 million in 2017, depicting a growth of almost 100% yoy basis. However, the operating loss came down to US$24.695 million in 2018 from US$28.4 million in 2017. Operating losses decreased due to significant cut for the expense incurred in research and development of the products. The net loss after tax came down to US$26.7 million in 2018 from US$28.9 million in the previous year-end 2017.
As at 9 May 2019, AXP remains suspended for trading at Australian Stock Exchange. In an announcement dated 3 May 2019, AirXpanders, Inc. stated that halt would remain for the stock until its negotiations get resolved. The company anticipates continuing the suspension until the plan gets finalised.
The stock of the company remains suspended at A$0.035 on 9 May 2018 and it last traded on ASX on 28 March 2019. AXP stock has fallen by 90.65% over the past one year as measured on 28 March 2019.
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