An example of what news of a U.S. listing can do for a stock. I'm pretty sure that HML also has a PR firm working for them.
By the way - look at the last paragraph. How come these guys are saying they expect Health Canada marketing approval by mid-March. What gives, how do you qualify for Priority Review status? I don't know much about this company, but from what I can tell, they have a larger market cap and they haven't even filed for FDA approval yet.
Hemosol excites investors with U.S. share offering
Thursday January 18, 3:37 pm Eastern Time
By Ian Karleff
biz.yahoo.com
TORONTO, Jan 18 (Reuters) - Hemosol Inc. (Toronto:HML.TO - news), which is in late stage clinical trials for its blood substitution product Hemolink, saw its shares soar on Thursday after saying a day earlier that it would issue its stock in the United States.
Hemosol's shares rose as much as 29 percent or C$3.30 to C$14.80 on the Toronto Stock Exchange on Thursday, but by late afternoon the stock had fallen back to C$13.80, up C$2.30. In the past year the shares have traded as high as C$27 and as low as C$10.25.
Analysts said the underwriting of the sale of 7 million shares by UBS Warburg LLC and Dain Rauscher Wessels lends credibility to Toronto-based Hemosol's commercialization plans and gives the company access to a much larger pool of capital.
Furthermore, Hemosol's stock market valuation should rise to a level commensurate with higher U.S. valuations for biotechnology companies, said Canaccord Capital biotech analyst Wayne Schnarr.
``This should move them into a U.S. valuation as opposed to a Canadian valuation, and U.S. valuations tend to be higher for equivalent companies,'' said Schnarr, adding that the sale of shares in the U.S. will mean a listing on Nasdaq.
Schnarr rates the shares a buy with a C$40 target price.
Hemosol is in the process of building a manufacturing plant in suburban Toronto in anticipation of successfully completing a phase three clinical trial in the United States for Hemolink.
The company recently completed phase three trials for Hemolink in Canada and Britain, and is awaiting marketing approval from Health Canada that is expected to come before mid-March. |
