AirXpanders, Inc. Appoints Cowen Inc. As Financial Advisor

  • May 09, 2019 AEST
  • Team Kalkine
AirXpanders, Inc. Appoints Cowen Inc. As Financial Advisor

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.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK