Atossa Genetics Inc (NASDAQ:ATOS)
A little-known biotech company which specializes in women’s health, (specifically, breast cancer prevention) has been showing up on small-cap and penny stock traders radar for the last few days to a few weeks. A little digging into company news releases indicates that they will be presenting at the 6th annual LD micro Invitational on June 7th, 2016 in Los Angeles California. With the stock having come out of a long-term down trend and now forming a beautiful low-base- which shows a rounding bottom- perhaps something good just may come out of this meeting. The volume profile shows that on higher volume trading days the shares have been up on the day, versus down on the day with lower volume. This suggests accumulation by longer-term investors or speculators.
Here is a little information about the LD Micro Invitational –
“LD Micro was founded in 2006 with the sole purpose of being an independent resource in the microcap space. What started out as a newsletter highlighting unique companies has transformed into an event platform hosting several influential conferences annually (Invitational, Summit, and Main Event).
In 2015, LDM launched the first pure microcap index (the LDMi) to exclusively provide intraday information on the entire sector. LD will continue to provide valuable tools for the benefit of everyone in the small and microcap universe.”
Insider Buying
A close look at the company insider transactions list indicates numerous transactions going back to June of 2015 up to the present. If insiders have a good pulse on this company it seems as though good things may be on the horizon. Although the company has a high-cash burn rate from operations and salaries, they have been able to go into the market and sell additional shares to the public thru “secondaries” as needed for much needed company cash.
New Funding By Large Long-Only Fund
The Company announced that it has entered into a $10 million stock purchase agreement with Aspire Capital Fund, LLC. Under terms of the agreement, after the SEC declares the registration statement related to the transaction effective, Aspire has committed to purchase up to $10 million of Atossa’s common stock over 30 months, based on prevailing market prices over a period preceding each sale.-MarketWired
Aspire Capital Fund, LLC is a Chicago-based, long-only investment fund focused on making open market and direct equity investments in publicly traded companies. Aspire Capital Fund, LLC is managed by Aspire Capital Partners, LLC.
We invest in a broad range of industries with emphasis in healthcare and technology. We look for companies with bright prospects and strong management but whose full potential has not yet been realized in the market. We rely heavily on our ability to conduct meaningful fundamental diligence but we’ve learned that the best returns can only be achieved when incentives are truly aligned. As a result, we work very hard to build strong partnerships with our portfolio company management teams. We firmly believe that we are not just investing in companies. We are also investing in relationships
Company-Related Comments
“Aspire Capital has been an important financial partner over the past three years and we look forward to continuing our work together to execute on our business objectives,” stated Kyle Guse, Chief Financial Officer of Atossa Genetics. “This financial arrangement will provide us with the financial resources and flexibility so that we can raise equity based on favorable market conditions and our evolving working capital needs.”
“We are very pleased to continue our financial relationship with Atossa,” said Steve Martin, Principal of Aspire Capital. “We are very excited about Atossa’s Phase II clinical program and are happy to be part of Atossa’s progress.”–MarketWired
Company Profile
Atossa Genetics Inc., a clinical-stage pharmaceutical company, focuses on developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions in the United States. The company is conducting a Phase II clinical study using microcatheters to deliver fulvestrant as a potential treatment of ductal carcinoma in-situ and breast cancer; and a pharmaceutical program under development is Afimoxifene Topical Gel for the treatment and prevention of hyperplasia of the breast. Atossa Genetics Inc. was founded in 2009 and is headquartered in Seattle, Washington.