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Organovo (ONVO) takes advantage of its big move over the past few sessions by announcing a $100M...

Organovo (ONVO) takes advantage of its big move over the past few sessions by announcing a $100M mixed shelf registration in stock, debt securities and/or warrants. The stock has been on a tear over the past week since its debut on the NYSE, rising over 45% during the span, which includes a ripping 16% tear today. Shares +0.4% AH.
Comments (14)
  • mr.investor
    , contributor
    Comments (59) | Send Message
     
    Isn't this a bad thing for investors since they aren't a 100 million dollar company?
    17 Jul 2013, 08:46 PM Reply Like
  • Stan The Man
    , contributor
    Comments (143) | Send Message
     
    Huh? The market cap before this was already $500 million.

     

    In a mature company with a steady stream of income, selling stock can dilute the share of earnings owned by previous shareholders and is therefore often seen as a short term negative. That should not be true of a development company that has prospects but not earnings, and needs cash to finance itself until the gravy boat arrives.

     

    ONVO's President has said they have companies interested in investing (and by implication interested in a possible acquisition) but that he thinks the company will get a lot more for its stock if it stays independent until their product development is closer to FDA approval. This cash lets them do that. Bravo!
    17 Jul 2013, 09:38 PM Reply Like
  • Esekla
    , contributor
    Comments (2336) | Send Message
     
    Huh? FDA? As I understand it, their main product is replacing the single-cell cultures used in disease testing with more complex "printed" versions that can simulate the patterns of multiple tissues found in most living organisms. I talked to friends who do this sort of work, and they believe that the main application would be for testing unidentified microbe types. It is definitely an advance, but a niche market. None of it would require FDA approval, nor does it seem like a game-changer, from a financial standpoint.

     

    I'm sure the Organovo people are delighted at having secure salaries for much longer now, and their work may eventually find other application. Speculate if you must, but it's hard to see the immediate investment rationale here. On the other hand, that does NOT mean the stock will necessarily come crashing back down. Markets are hardly efficient these days, and new tech makes for about as good a bear trap as anything. I invest in a few other bio-techs, but have no position in ONVO, and that's the way I like it.
    18 Jul 2013, 12:42 AM Reply Like
  • Esekla
    , contributor
    Comments (2336) | Send Message
     
    Feh, lousy comment system here. The liver tissue they recently produced does represent baby steps towards drug testing applicability, but again, that does not require FDA approval.
    18 Jul 2013, 01:18 AM Reply Like
  • mr.investor
    , contributor
    Comments (59) | Send Message
     
    Thanks for clearing it up Stan. I'm new to investing.
    18 Jul 2013, 02:09 AM Reply Like
  • Jack Wildcat
    , contributor
    Comments (163) | Send Message
     
    This company is a good short opportunity at these levels.
    17 Jul 2013, 09:41 PM Reply Like
  • ajmosesdds
    , contributor
    Comment (1) | Send Message
     
    There are only about 65 million shares outstanding. It traded some 10 million today. Welcome the short sellers so they can get squeezed out of their socks.
    17 Jul 2013, 10:28 PM Reply Like
  • sludgeesj
    , contributor
    Comments (5) | Send Message
     
    Think I will be happy as they can continue to fund their development.
    If this offering goes well it's a statement to what investors think
    is ahead
    Sludgees
    17 Jul 2013, 10:30 PM Reply Like
  • freefdawatchlist
    , contributor
    Comments (24) | Send Message
     
    ONVO a 3d bioprinting which was Real Estate Restoration and Rental, Inc. until 2-2012 with 38 employee. I doubt their business.
    17 Jul 2013, 11:41 PM Reply Like
  • InvestorWisdom
    , contributor
    Comments (270) | Send Message
     
    I suggest you do more research because the real estate company was the shell they reverse merger into, it has nothing to do with the company they are now. This management team is full of top talent, like the senior vice president of Bristol-Meyers Squibb which is a $73 billion dollar company and Smithkline is $126 billion company. This executive team and board probably has a trillion dollars in market cap they have helped build.

     

    this money is a drop in the bucket for what they can achieve.
    18 Jul 2013, 12:25 AM Reply Like
  • InvestorWisdom
    , contributor
    Comments (270) | Send Message
     
    Keep in mind that these shares are not being issued right away. They are just preparing them to have ready. They can sell them many months from now, at higher levels if they choose. It also states that they might use them to make acquisitions.
    18 Jul 2013, 12:30 AM Reply Like
  • janeborrowman
    , contributor
    Comments (123) | Send Message
     
    That's right....do your research, folks. You just might be surprised what's in store.
    18 Jul 2013, 02:06 AM Reply Like
  • jdw55sb
    , contributor
    Comments (38) | Send Message
     
    To freefdawatchlist, ONVO did a reverse merger. It is a form of an alternative public offering.

     

    http://bit.ly/111mm5z

     

    The company is for real they basically took over an already traded company for the purposes of their stock rights.
    18 Jul 2013, 02:10 AM Reply Like
  • Jason Aycock
    , contributor
    Comments (107) | Send Message
     
    Hi all:

     

    This item was edited to clarify that this is a mixed shelf registration, not an offering -- which might come well in the future. The S-3 is here: http://bit.ly/18p9Xhs

     

    --Jason Aycock
    Managing Editor, Market Currents
    18 Jul 2013, 02:11 AM Reply Like
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