Acasti Pharma Inc. (ACST) stock prices were down 6.53% as of market close on May 3rd, 2021, bringing the price per share down to USD$0.4608 at the end of the trading day. Subsequent pre-market fluctuations saw the stock swing back up by 2.91%, bringing it to USD$0.4742.
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Collaboration with Oppenheimer
September 29th, 2020 saw ACST announce its engaging Oppenheimer & Co., Inc., as the company’s financial advisor to facilitate the process of enhancing shareholder value. Investors are hopeful for the collaborative commencement of a formal process for the exploration and evaluation of strategic alternatives to increase shareholder returns.
Acasti continues to allocate significant time and resources towards the identification and evaluation of strategic alternatives. Despite there not being a guarantee of a successful outcome of their efforts, high hopes are placed in the company’s management, compounded by the renowned expertise Oppenheimer bring to the table.
ACST Capital Generation
Near the end of June 2020, ACST finalized the amendment and restatement of an existing ATM sales agreement. Under the authority of the agreement, ACST was allowed to periodically sell shares at the current market price, up to a total USD$75 million. As of the most recent distribution report on January 27th, 2021, ACST had issues a cumulative 20,159,229 common shares for aggregate gross proceeds of USD$21.7 million.
Reduction in Costs of Operation
As of the third quarter of 2021, ended December 31st, 2020, ACST reported a quarterly loss from operations of USD$2 million. The steep reduction compared to the USD$6.1 million for the same time period in the previous year is attributable to a reduction in expenses for R&D, general and administrative operations, and sales and marketing operations.
Lower Net Loss Reports
Net loss for Q3 2021 ended December 31st, 2020 was reported at USD$3.2 million, representing a net loss of USD$0.03 per share. This was a massive improvement over the net loss of USD$12.1 million reported for the same time period for the prior year, coming out to a net loss per share of USD$0.14. This improvement is attributable primarily to the reduction of net financial expenses by USD$4.7 million, caused by a decreased impact from the change in fair value of the derivative warrant liability as compared to the corresponding fiscal quarter in 2019.
ACST’s Liquidity Position
The company reported USD$26.5 million in cash and cash equivalents as of December 31st, 2020, significantly up from the USD$14.2 million reported as of March 31st, 2020. This consolidated liquidity position is forecasted to full fund ACST’s operations through the next several quarters or to the completion of the evaluation of possible strategic options.
Future Outlook for ACST
With a solid liquidity position that could set the stage for a transformative upcoming few quarters, ACST has adapted to the adversities presented by the onset of the global Covid-19 pandemic. It continues to work with Oppenheimer to facilitate the most significant and sustained increases in shareholder value possible.