In a recent move that caught the attention of investors, DGP Co., Ltd., a significant shareholder in Exicure , Inc. (NASDAQ:XCUR), has increased its stake in the company. According to the latest filings, DGP Co., Ltd. has purchased additional shares of Exicure, a pharmaceutical company specializing in preparations.
The transaction, which took place on September 12, 2024, involved DGP Co., Ltd. acquiring 237,223 shares of common stock at a price of $3.00 per share. This purchase amounted to a total investment of $711,669. The shares were acquired in exchange for debt owed by Exicure to DGP Co., Ltd., indicating a strategic move by the reporting person to convert debt into equity.
Following this transaction, DGP Co., Ltd.’s ownership in Exicure has reached 849,223 shares. This increase in stake reaffirms DGP Co., Ltd.’s position as a ten percent owner of the company. It’s noteworthy that the shares reported also include those that were previously contracted for sale but have not yet closed. DGP Co., Ltd. has granted the buyer an extension to complete the purchase by October 31, 2024, with the caveat that the sale remains uncertain and DGP Co., Ltd. retains the right to terminate the contract if necessary.
Investors and market watchers often scrutinize such transactions as they can reflect the confidence of significant shareholders in the company’s future prospects. Exicure’s stock performance and the impact of these transactions will continue to be monitored closely by the market.
The signature on the filing was provided by Kyungwon Oh, the Chief Executive Officer of DGP Co., Ltd., indicating the official authorization of the transaction.
In other recent news, Exicure, Inc., a pharmaceutical company, has been actively addressing financial and compliance issues. The company has entered into two significant debt-for-equity exchange agreements, converting a total of $1 million in promissory notes into shares of common stock. This move is aimed at satisfying the debts in full, including accrued and unpaid interest.
Additionally, Exicure has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the exchange. The company has also implemented a 1-for-5 reverse stock split to meet Nasdaq’s listing requirements, reducing the total number of outstanding shares from approximately 8.65 million to about 1.73 million.
The company has also been granted an extension by the Nasdaq Hearings Panel to meet the continued listing requirements by September 16, 2024. In a recent annual meeting, all four director nominees were elected to the board and the appointment of Marcum LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified. These are the recent developments in Exicure’s operations.
InvestingPro Insights
In light of the recent acquisition by DGP Co., Ltd., Exicure, Inc. (NASDAQ:XCUR) appears to be in a notable phase of its corporate trajectory. InvestingPro data offers a deeper look into the company’s current financial health and market performance, which could be of interest to investors considering the implications of DGP Co., Ltd.’s increased stake.
Exicure’s market capitalization stands at a modest $3.63 million, suggesting a relatively small size within the pharmaceutical sector. This could indicate a higher risk investment or a potential opportunity for growth, depending on investor perspective. The company’s price-to-earnings (P/E) ratio is negative at -0.45, reflecting that it is not currently generating a profit. This is further emphasized by a significant revenue decline over the last twelve months, with a drop of 97.9%, leaving the company with a revenue of $0.5 million. Additionally, Exicure’s gross profit margin remains at 100%, indicating that although revenue is low, the cost of goods sold is minimal.
InvestingPro Tips highlight that Exicure’s stock has experienced substantial volatility and a considerable decrease in price over various time frames, including a 10.11% drop over the last week and a staggering 65.59% decline over the past year. Moreover, analysts do not expect the company to be profitable this year, and the stock is noted to be trading at a high revenue valuation multiple. These factors underscore the challenges Exicure faces and may serve as a caution to investors about the stock’s stability and future performance.
For those looking to delve deeper into Exicure’s financials and market prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/XCUR, offering comprehensive analysis and guidance for informed investment decisions.
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