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BeyondSpring Inc . (NASDAQ:BYSI), a pharmaceutical company with a current market capitalization of $72.14 million, has announced the completion of a substantial asset sale, marking a pivotal move in its business strategy. According to InvestingPro data, the company maintains a strong cash position, holding more cash than debt on its balance sheet. On Monday, February 17, 2025, the company finalized the first closing of the sale of its assets under amended Preferred Share Purchase Agreements dated January 24, 2025. The agreements involve the sale of Series A-1 Preferred Shares of SEED Therapeutics Inc. to three buyers: Winning View Investment Limited, FULL TECH CORPORATE DEVELOPMENT LIMITED, and Mapfil Investment Limited. The stock, currently trading at $1.79, has shown resilience with a 9.82% year-to-date return, and InvestingPro analysis suggests the stock is currently undervalued.
The initial transaction resulted in BeyondSpring transferring a total of 1,730,454 shares to the buyers in exchange for $7,354,432.75 in cash. This disposal is considered significant by the standards of Form 8-K, as it involves a substantial portion of the company’s assets.
The agreements stipulate that the buyers will purchase a total of 8,333,637 shares for approximately $35.4 million across multiple closings. As of today, 6,603,183 shares remain to be transferred, with the expectation that these transactions will be completed by the end of 2026. However, the company cautions that there is no guarantee that all closings will occur as planned or that the results will align with the pro forma financial statements provided.
An amendment to the original purchase agreement was also made, allowing for an additional transfer of 230,400 shares to Winning View Investment Limited for $979,203.25, adjusting the number of shares for the second closing accordingly.
This strategic move is part of BeyondSpring’s broader business plans and reflects its ongoing efforts to prioritize its pipeline and advance its research, development, and clinical capabilities. With analysts forecasting 29.53% revenue growth for FY2024 and the company maintaining a healthy current ratio of 1.82, BeyondSpring appears positioned for potential growth. The company has committed to filing additional current reports on Form 8-K to disclose further closings under the Purchase Agreements. For deeper insights into BeyondSpring’s financial health and growth prospects, including additional exclusive ProTips, visit InvestingPro.
This news is based on a press release statement and the company’s filings with the U.S. Securities and Exchange Commission.
In other recent news, BeyondSpring Inc. has announced the sale of a portion of its Series A-1 Preferred Shares in SEED Therapeutics Inc., raising approximately $35.4 million. This transaction leaves BeyondSpring and its subsidiary, SEED Technology Limited, with about 14.4% of SEED’s outstanding shares. The proceeds from this sale are earmarked to support BeyondSpring’s ongoing late-stage clinical trials of Plinabulin, its leading drug candidate. Plinabulin, an anti-cancer agent, has demonstrated promising results in clinical studies, including a significant overall survival benefit in non-small-cell lung cancer patients. BeyondSpring’s CEO, Dr. Lan Huang, highlighted the strategic advantage of this transaction, allowing the company to fund its clinical trials without diluting shareholder equity. SEED Therapeutics, co-founded with Eli Lilly (NYSE:LLY) in 2020, has been valued at $100 million following a recent financing round led by Eisai Co (OTC:ESAIY). Ltd. BeyondSpring has cautioned that the expected benefits of the transaction are subject to risks and uncertainties, as outlined in its SEC filings.
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