Elutia Inc (NASDAQ: ELUT) shares bolstered a whopping 33% today as the company recently shared that they’ve secured about $10.5 million in funding through a private investment round. If all the warrants are cashed in as part of this funding, the total could go up to $26.2 million.

Latest Changes:

Just last week, Aziyo Biologics changed its name to Elutia Inc. Following this change, Elutia made an announcement about selling its Orthobiologics business unit to Berkeley Biologics, a subsidiary of GNI Group Ltd. This move is set to bring in a substantial amount of cash, totalling up to $35 million for Elutia. This sum includes a notable upfront payment of $15 million, plus additional potential earnings of up to $20 million over five years. The deal is expected to be finalized in the fourth quarter of 2023.

This sale is a big step for Elutia, especially in the realm of drug-eluting biomatrix technology (DEB). Elutia is actively seeking approval from the FDA for their main product, CanGaroo RM. This product utilizes innovative biomatrix technology with antibiotics rifampin and minocycline (RM), providing long-term protection for cardiac pacemakers and defibrillators. This tackles a huge market estimated to be worth around 600 million. Elutia is aiming to introduce CanGaroo RM to the market in the first half of 2024.

Subscribe to Microcapdaily.com Right Now by entering your Email in the box below. 

Standard Of Care:

Medtronic (NYSE: MDT) stands as the exclusive provider of the antibiotic envelope within the current market. This envelope is crafted using synthetic mesh infused with antibiotics. Back in 2014, Medtronic acquired this technology, making a strategic investment of up to $200 million. Primarily intended for Cardiac Implantable Electronic Device (CIED) revision procedures, this product boasts estimated annual sales in the range of $250 to $300 million.

However, despite its market presence and revenue generation, the Medtronic antibiotic envelope has notable limitations. While it effectively combats infections, its synthetic composition renders it less effective in supporting wound healing. Moreover, it poses challenges in accommodating larger devices like Subcutaneous Implantable Defibrillators (SCID).

Drug-eluting biomatrix (DEB):

Drug-eluting biomatrix (DEB) involves a specialized approach to drug delivery using a biomatrix as a carrier or platform. In simple terms, it’s a technique where a biomaterial matrix, often a biocompatible polymer or similar substance, is used to release drugs in a controlled and targeted manner.

The biomatrix acts as a support structure that can hold and gradually release drugs or therapeutic agents at a specific site in the body, typically over an extended period. This is particularly useful in medical applications where a localized and sustained delivery of medication is necessary.

For instance, in the context of Elutia’s CanGaroo RM, a biomatrix incorporating antibiotics rifampin and minocycline is used to provide prolonged protection for cardiac pacemakers and defibrillators. The biomatrix slowly releases these antibiotics at the surgical site, preventing infections and promoting healing.

DEB technology is gaining traction because it enhances treatment efficiency by ensuring the drug is delivered directly to the target area, minimizing side effects, and optimizing therapeutic outcomes. It’s a promising approach in the field of medical advancements, especially in areas like cardiology, oncology, and orthopedics.

Post-mastectomy Breast Reconstruction:

On top of this, the company also has plans to develop an RM version of its SimpliDerm biomatrix tailored for breast reconstruction procedures. The rate of infections after this surgery is quite high, more than 10%, highlighting a big medical need in a market valued at over $500 million. Elutia is stepping up to address this issue by developing SimpliDerm® RM, which incorporates their unique DEB technology. The funds raised through the private investment round (PIPE) and the sale of the Orthobiologics business unit will not only boost Elutia’s efforts in advancing their drug-eluting biomatrix products for the cardiac pacemaker and defibrillator market, but also for post-mastectomy breast reconstruction.

What’s next:

As mentioned earlier, their biomatrix platform serves two major markets. CanGaroo RM, their upcoming product, is slated for a 1H of 2024 market release and is poised to be a pioneer in a $600 million market. Furthermore, their SimpliDerm RM product utilizes the same proprietary antibiotic-eluting technology found in CanGaroo RM, which serves a 1.6B market according to their presentation deck. They aim to secure an IDE by Q4 2024, and upon achieving these milestones, they plan to venture into neurostimulator markets, particularly in pain management, to further drive their growth.

We will update you on ELUT when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture by sasint from Pixabay

FingerMotion, Inc. (NASDAQ: FNGR) continues to gain traction in recent months,  gaining over 500% since June 9th, 2023 this year. If you’re reading this now, you’re likely eager to understand the reasoning behind it. Based on their latest announcements, there are no dramatic changes fundamentally to warrant such price action. Yet their stock continues on a significant upward trend. From what we’ve seen, it appears to be the force of retail investors banding together to combat against manipulation, potentially creating the ultimate short squeeze.

Thoughts from Retail:

As per retail investors and a notable Twitter user known as HAMShortkiller, there is widespread concern regarding potential manipulation within FingerMotion. The chair of the U.S. securities stock exchange, Gary Gensler, is facing increasing criticism from investors who assert that the SEC tends to overlook white-collar crime allegations. To see what the fuss is all about, feel free to look into this video Kristen Shaughnessy shared on Twitter.

A lot of the commotion is around stock manipulation and malpractice by notable hedge funds. One user, BigC commented on the post above, “$40BB shock to the system. At what point does Jefferies realize they aren’t stopping the $FNGR deluge & mitigate losses? Or do they just roll over & become a Melvin Capital & let themselves implode? Unlike Melvin-there won’t be any Citadel to write them a $10BB check”.

Subscribe to Microcapdaily.com Right Now by entering your Email in the box below. 

To better your understanding of fundamental tactics, we’ve provided a brief overview below. Naturally, no investor tolerates manipulation. The AMC and GME events were an initial testament to the strength of retail investors and their determination to resist such actions. Although early stage, it appears FingerMotion is following a similar trend, and more hedge funds could be in for a rude awakening as more investors join in on the retail army.  

The SEC on its way to protect retail investors
byu/Ren3666 inwallstreetbets

Before we jump into the tactics, it’s important to note that HAMShortkiller also shared a post about previous malpractice back in 2009, which highlights the story behind Rocker Partners and Overstock.com (NASDAQ: OSTK). There’s an important Vimeo at the bottom of the article, explaining all the major details of what happened and how these practices work. While this article is from over a decade ago, the user suggests some of the exact same practices are happening today with FingerMotion. Practices such as a “Bear raid“.

Exploring Stock Manipulation Tactics:

Hedge funds have a bag full of short shares at their disposal, letting them play with a stock’s price using tactics like short-ladder attacks. They go heavy on borrowed shares to bet against stocks, especially when the demand is high, stirring the stock prices. Strangely, these moves aren’t illegal or firmly tackled by the SEC yet, raising eyebrows on their potential manipulation.

Bear Raid:

Short sellers can strategically utilize both traditional media and online discussion platforms to spread negative narratives about the target company. Through leaked information to journalists, bloggers, and discussion boards, they aim to create a broad negative image.

This orchestrated use of media is geared towards sowing doubt and fear among investors, employing sensational headlines, speculative reports, and exaggerated claims to induce panic selling and drive down the stock price.

Social media platforms play a crucial role in rapidly amplifying these negative narratives. Short sellers and their networks leverage these channels to spread rumors, creating a chain reaction of panic selling and significant stock price volatility.

The collaboration between short sellers and the media seeks to fulfill a prophecy of fear, prompting sell-offs that benefit the short sellers. It’s essential for investors to critically evaluate information, considering multiple reliable sources, and to be discerning of sensationalized narratives, particularly those propagated on online discussion platforms. Verifying information from credible sources is vital to avoid falling prey to orchestrated attempts to manipulate stock prices for personal gain.

Off Exchange Trading:

Hedge funds and market makers engage in off-exchange trading, allowing them to trade and swap stocks on foreign exchanges without the need for price disclosure. This practice involves manipulating the circulating supply by not accurately reporting transactions, a significant challenge the SEC is working to tackle. Despite efforts to introduce D-Limit orders for enhanced transparency, hedge funds and market makers present resistance.

Naked Shorting:

Stocks like $AMC and $GameStop have experienced an abundance of failure-to-deliver (FTD) orders, often a result of ‘short parties’ lacking the underlying asset. Retail investors have highlighted the presence of synthetic shares, known as naked shares, in the market. Naked shorting, though made illegal after the 2008–09 financial crisis, persists due to regulatory gaps and discrepancies between trading systems. The mainstream exposure of this practice raises concerns, emphasizing the need for retail investors to address these issues with the SEC.

A Community Against Market Manipulation:

We’re continuing to see efforts to expose malpractices in the stock market. Community members like HAMShortkiller are all over social media, shedding light on manipulation tactics driven by hedge fund partners. It’s refreshing to see investors sharing factual and positive articles regarding a stock’s performance or analytics. It’s clear the investing community aims to stay informed and united against market manipulation once and for all. 

The latest movie release, “DumbMoney” is a great example of the hysteria that occured a short time ago, but some claim it’s only the beginning. According to Stephmase22 off Twitter, nothing has changed to prevent the same kind of market manipulation that happened with AMC and GME. She’s insinuating the same kind of manipulation is happening here with FNGR and that it must be stopped.

The general idea is that if the SEC won’t take action, then the folks who are getting the short end of the stick will step up, by short squeezing the players behind the manipulation.

We will update you on FNGR when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture by PIX1861 from Pixabay