Notable News to Watch: Moleculin Biotech, Inc. (MBRX)

On 01 Oct 2019, Moleculin Biotech, Inc. (NASDAQ: MBRX) changed -4.50% to recent value of $1.06. The stock transacted 352325 shares during most recent day however it has an average volume of 257.78K shares. It spotted trading -66.35% off 52-week high price. On the other end, the stock has been noted 36.38% away from the low price over the last 52-weeks.

Moleculin Biotech, Inc., (MBRX) recently reported its financial results for the second quarter ended June 30, 2019. Additionally, the Company reported potential upcoming milestones and recent corporate developments.

Financial Results for the Second Quarter ended June 30, 2019

Research and Development Expense. Research and development (“R&D”) expense was $2.1M and $4.2M for the three months ended June 30, 2019 and 2018, respectively. The decrease of $2.1M is mainly related to costs incurred in 2018 of producing additional drug product for the Company’s Annamycin clinical trials.

General and Administrative Expense. General and administrative expense was $1.5M and $1.2M for the three months ended June 30, 2019 and 2018, respectively. The increase of $0.3M was mainly attributable to a raise in G&A related payroll costs.

Gain from Change in Fair Value of Warrant Liability. We recorded a net gain of $2.4M in the second quarter of 2019 as contrast to a net gain of $0.3M in the second quarter of 2018, for the change in fair value on revaluation of our warrant liability associated with our warrants issued in conjunction with our stock offerings in April 2019, March 2019, June 2018, February 2018, and February 2017. We are required to revalue certain warrants at the time of each warrant exercise and at the end of each reporting period and reflect in the statement of operations a gain or loss from the change in fair value of the warrant in the period in which the change occurred. We calculated the fair value of the warrants outstanding using the Black-Scholes model. A gain results principally from a decline in our share price during the period and a loss results principally from a raise in our share price.  During the quarter, our stock price fluctuated greatly.

Liquidity and Capital Resources

As of June 30, 2019, the Company had cash and cash equivalents of $18.7M. In April 2019, the Company received gross proceeds of about $16.6M, as a result of a completed public offering and the exercise of various warrants from past public offerings. This brings the Company’s total net cash raised through its financing efforts year to date to $20.8M.

Cash used in operations was $9.2M for the six months ended June 30, 2019. This $2.9M increase over the previous year of $6.3M was mainly Because of preparing for clinical trials, a raise in R&D payroll costs, a raise in paid sponsored research and related expenses, and a raise in license fees. These are all a reflection of the ongoing clinical and pre-clinical activity and the associated increase in G&A support for our three core drug technologies.

The Company believes that its existing cash and cash equivalents as of June 30, 2019, will be sufficient to fund planned operations into the second quarter of 2020, without the issuance of additional equity for cash. Such issuance’s should extend the funding of the Company’s planned operations importantly beyond the second quarter of 2020. Such plans are subject to the Company’s stock price, market conditions, changes in planned expenses depending on clinical enrollment progress, the use of drug product or a combination thereof.

Its earnings per share (EPS) expected to touch remained 13.20% for this year.  The company has 46.4M of outstanding shares and 38.28M shares were floated in the market. According to the most recent quarter its current ratio was 2.1 that represent company’s ability to meet its current financial obligations. The price moved ahead of -7.67% from the mean of 20 days, -5.88% from mean of 50 days SMA and performed -12.93% from mean of 200 days price. Company’s performance for the week was -3.64%, -6.19% for month and YTD performance remained 1.92%.

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