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Small-Cap Snapshot: AcelRx shares tumble on secondary offering to raise money for opioid pain killer

Last updated: 13:00 09 Nov 2018 EST, First published: 11:00 09 Nov 2018 EST

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Shares of AcelRx (NASDAQ:ACRX) are plunging on the Russell 2000 after announcing the pricing of a secondary offering, which tend to be frowned on by investors. The Redwood City, California-based biotech will sell nearly 12.7 million shares at a price of $3.15. AcelRx is set to reap $40 million in gross proceeds from the deal, which will pay for the commercial launch of its opioid pain treatment drug Dsuvia. In a rare move, the US Food and Drug Administration this month gave the green light for Dsuvia to be used under strict medical supervision at a time when the US opioid crisis has escalated.

AcelRx shed 17.4% to $3.22.

Hertz Global Holdings Inc (NYSE:HTZ) is rocketing after the parent of the car rental company roundly beat third-quarter earnings and revenues on stronger vehicle rentals in the US and around the world. The company said its per-share earnings clocked in at $2.14, soundly beating the consensus estimate of $1.78. Its revenue, meanwhile, came in at $2.76 billion which also crushed the average target on Wall Street of $2.14 billion. The Hertz Corporation runs the Hertz, Dollar and Thrifty vehicle rentals, which are ubiquitous around the world.

Hertz added 18.5% to $19.30.

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Revlon Inc (NYSE:REV) shares are surging after its CEO Debra Perelman suggested the cosmetics company would cut jobs and pare back its costs by up to $150 million by the close of next year. Revlon is in the process of focusing on “higher-priority growth areas”, Perelman said. The unveiling of the New York company’s restructuring came as it reported revenue of $655.4 million in its third quarter, beating the consensus estimate of $639.6 million. On a per-share basis, Revlon reported a loss of $0.21 per share, but on an adjusted basis, its earnings came in at $0.14 per share.

Revlon added 25% to hit $27.50.

New Age Beverages (NASDAQ:NBEV) is taking a hit after the Colorado beverage company also disappointed investors by unveiling a secondary stock offering. Under its terms, New Age will offer 12.9 million shares of its stock at $3.50 per share to earn gross proceeds of $45 million. Underwriters will have 45 days to purchase up to 1.935 million additional shares to cover over-allotments. And the offering is set to close on or about November 13. The maker of Marley Cold Brew and Marley Mellow Mood has generated buzz in recent months for debuting a new line of cannabidiol-infused beverages.

New Age Beverages lost nearly 19% to $3.80.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

 

 

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