The impact of "market forces" are on full display with nano cap Sunshine Heart (SSH +19%). Shares have jumped 250% since yesterday. The company faces possible delisting from Nasdaq because its share price and stockholders equity are below minimum standards. The company says it is "working diligently" to address the situation before the March 20 deadline.
Underwriters will work their magic here. The company's cash balance at the end of September was only $792K so a capital raise is essential.
In the company's proxy materials for its January 9 special stockholders meeting, management is seeking shareholder approval to issue common shares tied to recently sold convertible preferred stock and a 1:20 reverse split of its common shares.
The conversion of preferred shares will open the door for a possible new offering of convertible stock.
Nasdaq grants Sunshine Heart (NASDAQ:SSH) an extension to January 30, 2017 to regain compliance with listing requirements of a minimum bid price of $1 and March 20, 2017 to achieve minimum stockholders equity of $2.5M. The company says it is working diligently to address the situation.
Thinly traded nano cap Sunshine Heart (NASDAQ:SSH) went south 15% today on more than triple normal volume, albeit on turnover of only 189K shares, in response to the company's announcement that it has entered int an agreement with an institutional investor for two series of convertible preferred stock for gross proceeds of $3.8M.
The deal involves the issuance of 2,900 registered shares of Series C Convertible Preferred Stock that will be convertible into a total of 17,058,824 share of common stock at $0.17. Also included is the issuance of 900 unregistered Series D Convertible Preferred Stock that will be convertible into a total of 5,294,118 shares of common at $0.17. The investor will also receive five-year warrants to purchase up to 22,352,941 shares of common at $0.18.
The preferred stock is not convertible and the warrants not exercisable until approved by Sunshine shareholders.
Sunshine Heart (NASDAQ:SSH) announces that it is implementing a strategic realignment of its near term strategy to fully focus its resources on its recently acquired Aquadex FlexFlow System. The Aquadex system is indicated for temporary (up to 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy, and extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization.
Key elements of the Company’s near-term strategy include: pausing clinical evaluations of the neuromodulation technology, reducing cash burn from $2M per month in the Q4,2015 to $0.8M per month in Q4,2016, continuing the Company’s ongoing review of potential partnerships, strategic alliances, and the pursuit of financing alternatives.
The above measures will help the Company to attain targeted Q4 annualized revenue run-rate for the Aquadex business of $5M and $10M in Q4,2017.
Thinly traded nano cap Sunshine Heart (NASDAQ:SSH) says apparently had a eureka moment regarding its product development strategy, shifting from counterpulsation to neuromodulation. It says it made the discovery in a feasibility trial that revealed the primary mechanism of action was a neuromodulatory effect due to the C-Pulse System's counterpulsation balloon's placement on the ascending aorta and its activation of the aortic baroreceptors (mechanoreptors in the aortic arch that change the tension in the aortic wall in response to changes in blood pressure) with each expansion.
The company says its new focus will enable a more cost effective way to develop a fully-implantable system, a faster path to commercialization and broader access to the NYHA Class III heart failure market.
The first step will involve the evaluation sympathic nerve activity in five patients using C-Pulse turned on and off to assess response. Full data should be available later this quarter.
A first-in-man study to show hemodynamic response to a proprietary neuromodulation approach in ~20 subjects will follow. It will use an external pulse generator and prototype leads. Enrollment will commence in Q4 with results expected in the same quarter. If all goes well, a clinical trial in ~30 patients will commence in 2017.
The company needs to do something. Shares are down almost 93% from early 2015.