NEW YORK, NY / ACCESSWIRE / May 17, 2018 / After dismal first quarter results this week and an announcement of pricing of a public offering of 9,166,667 units, shares of Cesca Therapeutics were clobbered. The stock closed down over 33% on Wednesday. Shares of Abaxis hit an all-time high however after Wall Street learned that top animal health company Zoetis would be acquiring Abaxis for $83 a share.
RDI Initiates Coverage on:
Cesca Therapeutics Inc.
Abaxis, Inc. shares closed up 16.15% on Wednesday and hit an all-time high of $83.78 during intra-day trading. It was an exciting day for the company after it was announced that top animal health company Zoetis would be acquiring it for $1.9 billion. Abaxis is involved with making blood and urine tests that predict, detect, and treat diseases like Lyme disease and heartworm. Zoetis CEO Juan Alaix remarked, "The characteristic of patients in animal health is that they don't speak. So in our industry, almost every animal getting into clinics needs to have a diagnostic test." According to analyst Alex Arfaei of BMO Capital Markets, "We believe this is a good deal for Zoetis although the valuation seems high." Zoetis offered $83 per share for Abaxis in an all-cash transaction. The deal is expected to close by the end of the year.
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Cesca Therapeutics Inc. shares were deep in the red on Wednesday, closing the day down 33.97% on nearly 5.5 million shares traded. Cesca, one of the market leaders in automated cell processing and point-of-care, autologous cell-based therapies, announced the pricing of its public offering of 9,166,667 units, with each Unit consisting of one common share, $0.001 par value, or Common Share equivalent and one common warrant to purchase one Common Share. The company is offering the units each at a price of 60 cents. The company intends to use the net proceeds for general corporate purposes which includes working capital and to pay accrued but unpaid interest of $657,000 under the company's revolving line of credit. It was also earlier in the week that the company posted first quarter results and a corporate update. The company posted net revenue of $1.9 million. This is compared to $3.3 million in the year ago period. Gross profit was $352,000, a drop from the $1.4 million reported a year ago. It was in the first quarter that the company announced the release of the X-Mini™ cell selection kit for the CAR-T research market.
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