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Astrotech Corporation (NASDAQ: ASTC) Stock faced negativity after the recent announcement

Astrotech Corporation (NASDAQ: ASTC) Stock lost 14.03% in the after-hours trading session on Tuesday, April 7, 2021, after it started the day with positive momentum and gained 1.38% in the morning session. ASTC shares have lost 11.60% over the last 12 months, and they have moved up by 7.80% in the past week. Over the past three months, the stock has gained 15.71%, while over the past six months, it has added 28.49%.

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Let’s have a look at the recent developments about the ASTC

Increasing the public offer

On April 7, 2021, Astrotech Corporation (ASTC) increased the size of the previously announced public offering and purchase on a firm commitment basis of 21,639,851 shares of common stock. First, ASTC stock offered 6,666,667 shares of its common stock. ASTC stock is now offering shares to the public at $1.50 per share. April 12, 2021, is the last date for the offer and gross proceeds of $32.5 million will be used for general corporate purposes, working capital, and capital expenditures.

Agreement between Cleveland Clinic and Astrotech subsidiary

On April 7, 2021, Astrotech subsidiary, BreathTech Corporation signed an investigator-initiated study agreement with the Cleveland Clinic Foundation.

The agreement is to use BreathTech’s BreathTest-1000 to compare exhaled breath of Corona positive patients as well as to used it for negative COVID-19 patients. This exercise aims to analyze different volatile organic compounds connected with different disease states.

Manufacturing agreement with Sanmina Corporation

On March 31, 2021, Astrotech Technologies, a subsidiary of Astrotech Corporation signed an agreement with Sanmina Corporation to manufacture its mass spectrometry products.

According to the agreement, Sanmina will manufacture 1st Detect’s TRACER 1000™ and AgLAB’s AgLAB-1000™, and BreathTech’s BreathTest-1000™ once those products are ready to be released.

Sanmina is one of the biggest company to provide integrated manufacturing solutions for EMS.

Recent financial results

On February 17, 2021, Astrotech reported its financial results for the second quarter of the fiscal year 2021, which ended December 31, 2020.

Financial highlights of Q2, 2021

  • Selling, general and administrative expenses decreased $307 thousand, or 27.7%, compared with the quarter ended December 31, 2019.
  • R&D expenses decreased by $427 thousand, or 23.8%, compared to the same period last year.
  • ASTC raised gross proceeds of $37.0 million by two public offering and by two registered direct offerings in the reported quarter.
  • TRACER 1000 revenue for the reported quarter was $130 thousand

Conclusion: the recent IPO amended offer put a negative impression on investors which took its stock down in the extended session on Tuesday. Though in the recent past, ASTC stock has performed well. ASTC stock can go either way on Wednesday.

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