Shares of the commercial-stage medical technology company Minerva Surgical (NASDAQ:UTRS) are up over 127% in the pre-market session on December 28. The sudden spike in this penny stock’s price comes after it announced that Accelmed, a private equity firm focused on acquiring health technology companies, is taking a controlling stake in the company.
Minerva said that it entered into a private placement led by Accelmed to sell its 146,627,565 shares at $0.2046 per share. The private placement will lead to gross proceeds of $30 million. The private placement will close in the first quarter of 2023, and following the offering, Accelmed will gain the controlling stake in Minerva Surgical.
The offering is likely to boost its cash position (learn more about UTRS’ financials here), which would help the company to support its operations and research and development activities.
Minerva’s CEO David M. Clapper said that the investment would provide the company “with the cash runway” for the next 12 months and support its growth.
Is UTRS Stock a Buy or Hold?
UTRS is a penny stock and could be highly volatile. Though investors cheered the recent development, our data shows that retail investors holding portfolios on TipRanks have sold UTRS stock in the last 30 days. Also, the stock has lost substantial value in one year.
Investors should exercise caution before investing in UTRS stock. Meanwhile, they can use TipRanks’ Penny Stocks Screener to find penny stocks that could beat the broader market averages.
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