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Blue Water Vaccines has raised $ 8 million in private placement after the stock fell


Image source: Blue Water Vaccines

Less than a week after its shares rose from $ 59.00 to $ 10.17, Blue Water Vaccines (BWV) announced on Wednesday that it had gross earnings of $ 8 million through private placement with institutional investors.

The company sold 1,180,812 ordinary shares along with warrants to buy an equal number of shares at a price of $ 6.6775.

Warrants have a four-year term and are available for use at a price of $ 6.65 per share.

A wild ride after a small IPO

Blue Water Vaccines focuses on research and development of vaccines to prevent infectious diseases. Her most advanced program is in the fight against influenza.

The company went public less than two months ago, on February 18, 2022, raised $ 20 million in gross revenue at $ 9.00 per share.

Bets against Ilona Maska were not profitable

On the first day of trading, stocks rose to $ 57.40 and flirted with $ 70.00 in March due to some combination of “fear of missing out” and rampant speculation.

Last Friday, the stock plummeted under heavy pressure, falling 83% to 10.7 million shares, just ashamed of the company’s 11 million shares.

Again, there was no news from the company that would justify any of these steps.

Investment dissertation

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Such volatile stocks are clearly not suitable for those investors who are in no way at risk. Blue Water Vaccines has double the weight of a preclinical biotech company that has also interested speculators.

We fully expect complaints to the SEC and class action lawsuits from those who own the shares at a high price.

Also, keep in mind that the company itself warned in its IPO prospect that “our investments are very speculative.

In the short term, blue water vaccines may be attractive only to those traders who are agile and can act quickly. Watch for short interest, which has undoubtedly increased in the last two weeks since the last available report on March 31 with 18,073 shares.

Are there long-term grounds for optimism? Yes, we believe that there is, but again we emphasize that this is a game that should be considered only by those investors who may tolerate high risk and high volatility of part of their portfolio:

  • Any company that develops vaccines, especially against infectious diseases, will be on the watch lists of a wide range of investors.
  • The FDA has demonstrated its willingness to advance vaccines through regulatory legal gloves at an unprecedented rate.
  • The candidate includes new vaccine candidates licensed exclusively from renowned research institutions, including:
    • Oxford University
    • Cincinnati Children’s Hospital Medical Center
    • St. Jude’s Children’s Research Hospital

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Image source: Blue Water Vaccines


Source: Stock news

Share price data is provided by IEX Cloud with a 15-minute delay. Chart cost data is provided by TradingView with a 15-minute delay.

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