June comes to a close with a fizzle as 3 companies attempt to go public before the month end. Biotech companies continue to dominate the IPO market, representing two of the three deals this week.
Gemphire Therapeutics Inc. (GEMP: Nasdaq) - a clinical stage biopharmaceutical company focused on therapies for the treatment of dyslipidemia, which is generally characterized with an elevation of LDL-C (bad cholesterol) triglycerides, or fat in the blood, or both. Gemphire is offering 3.75 million shares at $11.00 - $13.00, with an estimated market capitalization of $110 million at the midpoint. The proceeds will be used to fund development costs associated with three late stage clinical trials of their lead product candidate, gemcabene, as well as manufacturing related activities, preclinical studies and general corporate purposes. Lead underwriters are Jefferies, RBC Capital Markets, and Canaccord Genuity.
Note: This company was originally scheduled to price last week and the offering was pushed back to this week. In most cases a delayed offering is not a good sign.
Syros Pharmaceuticals, Inc. (SYRS: Nasdaq) - a biopharmaceutical company which is building a pipeline of gene control medicines, and currently focused on developing treatments for cancer and immune-mediated diseases. Syros is offering 4 million shares at $14.00 - $16.00, with an estimated market capitalization of $341 million at the midpoint. The proceeds will be used to fund a Phase 2 clinical trial of their lead product candidate, SY-1425, and to complete IND-enabling activities and the Phase 1 portion of their planned Phase 1/2 clinical trial of their additional product candidate, SY-1365. Cowen and Company, Piper Jaffray, JMP Securities, and Wedbush PacGrow.
Monster Digital, Inc. (MSDI: Nasdaq) - is a consumer products company which has a license with Monster, Inc., which allows them to manufacture and sell high-end consumer electronics, mobile products and computing applications utilizing the "Monster Digital" brand name. Monster is offering 2.5 million shares of common stock at $4.50 - 6.00, and 5 year warrants to purchase 2.5 million shares of common stock at an exercise price of 125% of the IPO price. Post offering the company will have a market capitalization of approximately $42.3 million. The proceeds will be used for working capital and general corporate purposes, including expanding sales and marketing efforts. Lead underwriters are Axiom Capital Management, Inc. and WestPark Capital, Inc.
Note: This offering was attempted at the end of 2015 with Joseph Gunnar and Axiom as the lead underwriters.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.