IPO Outlook: ALPX, JUNS, LASE, LPTV

By Duncan Ferris

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Some of the IPOs slated for the week ahead include Alopexx (NASDAQ: ALPX), Jupiter Neurosciences (NASDAQ: JUNS), Laser Photonics (NASDAQ: LASE) and Loop Media (NYSEAMERICAN: LPTV).

This week's selection of expected IPOs include a wide variety of companies, from a clinical-stage biotechnology outfit to a laser-cleaning manufacturer.

As always, make sure to consider the risks of investing in a company before you decide to back it at IPO. Here are the upcoming IPOS for the week ahead:

Alopexx (NASDAQ: ALPX)

This company is joining the NASDAQ with a listing of 3 million shares. Based on the assumed IPO price of $5.00 per share, the company estimates that it will receive net proceeds from the offering of approximately $12.3m.

It's also worth noting that, upon completion of the offering, Alopexx President and CEO Daniel Vlock will hold a majority of the voting power of the company's capital stock through his ownership of 52% of outstanding common stock.

What Does Alopexx Do?

Alopexx is a clinical-stage biotechnology company developing novel immune therapeutics for the prevention, treatment and mitigation of bacterial, fungal, and parasitic infections that express the antigenic target poly N-acetyl glucosamine (PNAG).

That target has been found on an expanding number of pathogens and the company's management believes that the broad-spectrum potential of its therapeutics will allow them to be used for the prevention, treatment and mitigation of a wide range of infections.

Examples of the progress achieved by Alopexx's therapeutics can be seen with the business' vaccine candidate, AV0328. The treatment's first-in-man trial showed it to be well tolerated with no serious adverse events observed, while it also induced protective antibodies against all PNAG-expressing pathogens tested.

The company believes this vaccine's broad-spectrum potential will allow it to be used for the long-term prevention of a wide range of infections including pneumococcal pneumonia, methicillin-resistant Staphylococcus aureus (MRSA), meningitis, and sexually transmitted diseases.

Who is Leading the ALPX IPO?

The company's public listing is being headed by ThinkEquity.

Use of ALPX IPO Proceeds

The company has indicated it will use the IPO proceeds for:

  • Around $5.5m to initiate a proof-of-concept trial of vaccine AV0328, including manufacturing, and correlative laboratory studies.

  • approximately $4.5m to initiate a proof-of-concept trial of monoclonal antibody therapeutic in ICU patients.

  • The remainder for general corporate purposes, including working capital, operating expenses and capital expenditures.

Jupiter Neurosciences (NASDAQ: JUNS)

Jupiter Neurosciences is due to list 2.5 million shares on the NASDAQ via IPO in the week ahead.

Jupiter Neurosciences Inc has filed for an initial public offering (IPO). The company believes the IPO stock price will be between $5 and $7 per share of common stock. The company will list its common stock on the NASDAQ Capital Market under JUNS.

The implied market capitalization of JUNS at IPO is $56.92m, given the midpoint of the range.

What Does Jupiter Neurosciences Do?

Jupiter Neurosciences is a clinical-stage research and development (R&D) pharmaceutical company located in Jupiter, Florida. The company has developed a unique resveratrol platform product primarily targeting the treatment of neuroinflammation.

Resveratrol is found in several food sources, including the skin of grapes, blueberries, raspberries, mulberries, and peanuts.

Jupiter's primary product candidate, JOTROL™, has many potential indications of use for rare diseases, of which it is primarily targeting Mucopolysaccharidoses Type 1, Friedreich's Ataxia, and MELAS and ALS in an earlier development stage. In the larger disease areas, the firm primarily targets Mild Cognitive Impairment/early Alzheimer's disease with an early development program in TBI/concussions.

The resveratrol products currently available on the market are associated with severe gastrointestinal (GI) side effects at the dose levels Jupiter Neurosciences believes are needed for therapeutic effects.

The emerging growth company believes that JOTROL™, based on the results from its Phase I trial, has the potential to deliver a therapeutically effective dose of resveratrol in the bloodstream without causing GI side effects.

Who is Leading the JUNS IPO?

Spartan Capital Securities LLC is the principal underwriter and book runner on the JUNS stock IPO.

Use of JUNS IPO Proceeds

Jupiter Neurosciences estimates the net proceeds from its IPO will be approximately $13.2m, based on an assumed mid-point offering price of $6 per share.

The principal purpose of its IPO is to obtain capital to support its operations and facilitate future access to the public capital markets. The company believes proceeds from the IPO will be sufficient to see it through the next two years. 

The company intends to use the IPO proceeds in the following way:

  • Around $1.3m to repay a loan.

  • $350k to fund IND submissions for Friedreich's ataxia, MELAS and MCI/early Alzheimer's Disease.

  • $75k to pay the annual license fee to Aquanova AG.

  • $900k to fund the manufacturing of clinical trial supplies of JOTROL™.

  • $4m to fund Phase II clinical trials of JOTROL™ in patients with MPS I, later followed by an initiation of Phase II in MELAS and Friedreich's ataxia in the first half of 2024.

  • $250k to fund preclinical R&D for TBI/Concussion and ALS.

  • $4m will be allocated to paying for strategic services in Asia.

  • The remainder will fund general R&D and business running costs.

Laser Photonics (NASDAQ: LASE)

Laser Photonics is joining the NASDAQ with 3 million units of common stock, though it has granted the underwriters a 45-day over-allotment option to purchase up to 450,000 additional shares of common stock at the public offering price. 

The company estimates that the net proceeds from the sale of the shares in this offering will be approximately $13.4m, assuming a price of roughly $5.00 per share.

ICT Investments LLC is the majority owner of the company's shares of common stock and after this offering will hold approximately 60% of its issued and outstanding shares of common stock. 

What Does Laser Photonics Do?

Laser Photonics is a vertically integrated manufacturing company for photonics-based industrial products and solutions, primarily disruptive laser cleaning technologies.

The company claims to be pioneering new laser blasting technologies focused on disrupting the sandblasting and abrasives blasting markets. The company's solutions span use cases throughout product lifecycles, from product fabrication to maintenance and repair, as well as aftermarket operations.

As such, Laser Photonics says its laser blasting solutions are applicable in every industry dealing with materials processing, including automotive, aerospace, healthcare, consumer products, shipbuilding, aerospace, heavy industry, machine manufacturing, nuclear maintenance and de-commissioning and surface coating.

Sales efforts began in December 2019 and the business currently sells its laser cleaning equipment products globally to end users, which are primarily Fortune 1000 companies, as well as agencies of the US Government, including three branches of the US military.

Who is Leading the LASE IPO?

The sole book-running manager of this listing is Alexander Capital LP.

Use of LASE IPO Proceeds

The business says it intends to use the net proceeds from our sale of common stock in this offering as follows:

  • $1.5m for new product research and development.

  • $1.5m for existing product development, modernization and commercialization.

  • $2.0m for the development of international markets, including setting up distribution and subsidiaries in key target markets in Asia and the Middle East.

  • $3.0m to expand North American sales network and combine it with direct sales personnel and distributors in all major metropolitan areas and industrial market hubs for shipbuilding, aerospace, automotive, military equipment repair and manufacturing, energy generation and nuclear decommissioning.

  • $2.0m for the purchase of raw materials and component parts, such as laser pumps and optical components, with long lead times.

  • $3.5m for working capital.

Loop Media (NYSEAMERICAN: LPTV)

Loop Media is offering 2.4 million shares of common stock and anticipates a public offering price of between $4.50 and $5.50 per share of common stock.

The company says it expects to receive net proceeds of approximately $10.2m from this offering, based on an assumed public offering price of $5.00 per share.

The business' common stock is currently quoted on the Pink Open Market operated by OTC Markets Group, with its share price sitting at $2.64 at market close on 19 September. However, this price is expected to increase prior to the stock's anticipated uplift to the NYSEAMERICAN on 22 September due to a planned 3-to-1 reverse stock split planned for 20 September.

The reverse stock split will see the number of common shares of outstanding stock reduced from 153,539,596 shares to approximately 51,179,865 shares.

What Does Loop Media Do?

Loop Media is a multichannel digital video platform media company that uses marketing technology to generate revenue and offer services. The company says its technology and vast library of videos and licensed content enable it to curate and distribute short-form videos to out-of-home dining, hospitality, retail, convenience stores and other locations and venues to enable them to inform, entertain and engage their customers.

The business' technology provides third-party advertisers with a targeted marketing and promotional tool for their products and services and, in certain instances, allows Loop Media to measure the number of potential viewers of such advertising and promotional materials.

The company also allows out-of-home customers to access its service without advertisements by paying a monthly subscription fee. In addition to providing services to venue operators, Loop Media currently provide its services direct to consumers in their homes on connected TVs and on their mobile devices.

Who is Leading the LPTV IPO?

The listing is being run by Roth Capital Partners. LPTV previously planned to uplift in July.

Use of LPTV IPO Proceeds

Loop Media says it currently intends to use the net proceeds from this offering for marketing, new customer development, payment of offering-related bonuses to certain of its officers, working capital and other general corporate purposes.

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In this article:

Topics:
IPO
Industries:
Healthcare
Industrials
Communication Services

Author: Duncan Ferris

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Duncan Ferris does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Duncan Ferris has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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