NASDAQ : AZRX
Market Awareness Program Case Study
Synopsis
A market awareness program presents numerous immediate as well as long-term benefits to the company. The program helps to tell the our clients story to millions of potential investors who otherwise have no idea the company exists. The program greatly increases trading volume, fixes the disconnect between the company’s intrinsic value and its stock price, removes selling overhangs, helps to defend the stock from short attacks, fixes the chart, positions the stock appropriately for an equity raise and creates currency for stock acquisitions.
Benefits
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NASDAQ : AZRX
History
AzurRx (NASDAQ: AZRX) is a clinical stage biopharmaceutical company. The Company raised $15.2mm in private placement on 7/27/20 in order to proceed with two clinical studies.
Despite significantly improved balance sheet and very good preliminary results in both studies, AZRX failed to capture investor interest and grow its investor base, trading about 330k shares a day on average in 2020. Moreover,
The awareness program launched on December 30, 2020 with the stock trading 3.3 million shares per day – A 1000% volume increase compared to the pre-program average.
once the initial excitement about the capital raise died down, trading volume dropped even further to 171k shares per day and stock price stabilized in the high 70 cent range (in line with the $0.77 conversion price of the equity raise).
Despite updates showing meaningful progress with both studies and a well-written shareholder update letter by the Company’s CEO, management was unable to bring more interest to the company, which is evident by the company’s stock price and volume in the September through December of 2020.
Realizing that things will not improve on their own, in late December the Company decided to engage Trending Equities for their IR and market awareness expertise. The awareness program launched on December 30th, 2020, with the stock trading 3.3mm shares per day – a 1,000% volume increase compared to the pre-program 2020 average.
The program was launched on December 30, 2020 and daily trading volume increased to 18.8mm share per day vs. only 330k shares per day prior to the launch of the program (a 5,500% improvement) with a highest day trading volume of 178mm shares on 1/22/2021.
From the beginning of 2021, AZRX traded 389mm shares in just 19 trading days, or 20.5mm shares per day on average, compared to a total of 84mm shares throughout all of 2020 before the awareness campaign began on Dec 30, or only 330k share per day on average.
The market awareness program has not only improved daily trading volumes for AZRX but also allowed the company to successfully complete a follow-on equity raise of $8mm which was done basically overnight on January 4, 2021.
However, recognizing the benefits that Trending Equities can bring in terms of building a market awareness for its company, AZRX extended its contract with Trending Equities and as a result not only did the trading volume continue to increase, but the stock price improved drastically as well reaching an intra-day high of $2.63 on 1/22/21 (a 250% increase from the deal price).
This is another example of how a market awareness program prepared and executed by Trending Equities helped the Company to develop a liquid currency, facilitated a capital raise and helped to improve and stabilize the Company’s stock price after the deal
Analysis
The TE Difference
The chart below illustrates the daily price and volume action of the stock before and after Trending Equities began the awareness program. Chart clearly illustrates the increase in daily trading volume and price on December 30, 2020, the day awareness program was launched. Stock price came back to $0.80 when the Company did an overnight $8mm raise; however it quickly rebounded and continued to move higher, with both price and trading volume increasing drastically, trading a total of 389mm shares in just 19 trading days, or 20.5mm shares per day, with the stock price increasing by 250% to an intraday high of $2.63 and currently trading in the 1.50 range, or 100% above the deal price.
