Maxim Group upgraded Celsion (NASDAQ:CLSN) to “buy” from “hold” with a $7 price target after the company renegotiate outstanding warrants, raising $15.6-million.
Shares of Celsion were quoted at $4.96, down $1.09, or 18%, at midday on Oct. 4.
Analyst Jason McCarthy writes that a Celsion press release on Oct. 3 sent the shares up sharply, “but our review of the news is that this is (essentially) old data that was previously released (and which we profiled in an earlier note).”
Mr. McCarthy said management used the strength in the stock to re-negotiate outstanding warrants and, as a result, raised $15.6-million, creating a new cash runway.
“The financial overhang (less than a quarter of operating cash) is now lifted,” he added.
