PetVivo Holdings announces private sale of shares

PetVivo Holdings, Inc. (OTCQB:PETV), a company specializing in medical devices for veterinary medicine, has entered into a material definitive agreement and completed a private offering of restricted common stock, raising $617,500.

On Thursday, the company disclosed the sale of 950,000 shares to approximately eight accredited investors at a price of $0.65 per share. According to InvestingPro data, the company’s stock has shown significant volatility, with a 52-week range of $0.29 to $1.25, and currently operates with a moderate debt level.

The private transaction was conducted under Section 4(a)(2) of the Securities Act of 1933, as amended, which exempts sales to accredited investors from registration requirements.

The investors have agreed that any future sales or transfers of these shares will comply with the Securities Act, indicating that the securities are for investment purposes and not intended for immediate resale.

InvestingPro analysis reveals that while the stock has experienced a strong 46% return over the past six months, its current financial metrics indicate challenges with short-term obligations exceeding liquid assets.

The shares sold are considered "restricted securities" under Rule 144 of the Securities Act and will bear the appropriate restrictive legend to this effect. This indicates that the shares cannot be sold on public markets unless they are registered with the SEC or are sold under an exemption from registration.

PetVivo Holdings, Inc., based in Edina, Minnesota, operates in the surgical and medical instruments and apparatus industry. The company’s business address and principal executive offices are located at 5251 Edina Industrial Blvd., Edina, Minnesota.

Recent InvestingPro data shows the company generated revenue of $0.97 million in the last twelve months, maintaining a strong gross profit margin of 76.34%. For deeper insights into PETV’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

This financial move comes as PetVivo Holdings continues to focus on expanding its product offerings and market reach within the veterinary medical device sector. The funds raised through this offering are expected to contribute to the company’s growth initiatives, which could be crucial given the company’s current financial position. InvestingPro data indicates the company is not yet profitable, with an EBITDA of -$8.87 million in the last twelve months.

The details of the transaction were outlined in a Form 8-K filing with the Securities and Exchange Commission, which serves as the source of this information. The specifics of the subscription agreement used in the offering were also included in the filing, though the identities of the investors and their respective investment amounts were not disclosed.

Investors are reminded that the shares acquired in private offerings are typically subject to holding period requirements and other restrictions on resale. PetVivo Holdings has not publicly announced any immediate plans for additional financing or strategic transactions following this private sale of shares.

In other recent news, PetVivo Holdings Inc., a veterinary health solutions provider, has reported significant operational and financial developments. The company has streamlined its operations by eliminating the position of Chief Operating Officer (COO), with the responsibilities being distributed among four existing staff members. This decision, aimed at reducing costs, resulted in the departure of Randall A. Meyer, the former COO.

On the financial front, PetVivo has reported a 62% sequential revenue growth for the fiscal second quarter ending September 30, 2024, despite a slight 3% year-over-year decrease. This growth was primarily driven by a 147% increase in distributor sales. The company’s net loss also improved to $2.2 million, due to a 25% decrease in operating expenses.

PetVivo’s executives have projected revenues of approximately $1.5 million for the fiscal year 2025, reflecting their confidence in the company’s growth trajectory. These recent developments offer insights into PetVivo’s strategic moves to adjust its business strategies in response to its financial and organizational needs.

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