US Weekly IPO and SPAC Monitor: Biotechs Jupiter Neurosciences and Alopexx with Laser Photonics

The IPO issuance slows down in the week ahead after AIG spin Corebridge Financial (CRBG) was the biggest IPO of 2022 thus far.  Three small deals may price in the week ahead, Neuro-inflammation biotech Jupiter Neurosciences (JUNS) is the largest. Two nano-caps may price in the week ahead, infectious disease biotech Alopexx (ALPX) and laser-based system maker Laser Photonics (LASE).

Jupiter Neurosciences

Last week six issuers began trading, AIG spin-off Corebridge $CRBG, the largest deal of 2022. Third Harmonic Bio (THRD) upsized, Nexalin Technology (NXL) and Wearable Devices (WLDS). Two companies up listed from the OTC, LINKBANCORP (LNKB) and Bio- RFID sensor technology company, Know Labs (KNW). 

US IPO Week Ahead

via Renaissance Capital

Jupiter Neurosciences (JUNS)

Jupiter Neurosciences (JUNS) plans to raise $15 million at a $62 million market cap. Jupiter’s sole candidate, JOTROL, is being developed for various neuro and rare disease indications. JOTROL completed a Phase 1 safety and tolerability trial in March 2021 and is expected to commence Phase 2 trials in the 4Q22.

The Company has developed a unique resveratrol platform product primarily targeting treatment of neuro-inflammation. The product candidate, called JOTROL™, has many potential indications of use for rare diseases, which of we primarily are targeting Mucopolysaccharidoses Type 1, Friedreich’s Ataxia, and MELAS and with ALS in an earlier development stage. In the larger disease areas, we are primarily targeting Mild Cognitive Impairment/early Alzheimer’s disease with an early development program in TBI/concussions.

Alopexx (ALPX)

Infectious disease biotech Alopexx (ALPX) plans to raise $15 million. 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.

In a first-in-man trial vaccine candidate, AV0328, has been shown to be well tolerated with no serious adverse events observed. It was noted to induce protective antibodies against all PNAG-expressing pathogens tested. Similarly fully human monoclonal antibody, F598, that also targets PNAG, has been shown to be well tolerated and no serious adverse events were noted in phase 1 and pilot phase 2 trials.

Seek to establish F598 as the standard of care for preventing and ameliorating gram-negative and gram-positive bacterial infections along with fungal infections by organisms that express PNAG in patients admitted to intensive care units (ICU).

  • Underwriters: ThinkEquity
  • Headquarters Cambridge, MA
  • Founded 2006
  • Employees 3
  • Website: Alopexx (ALPX)

Laser Photonics (LASE)

Eco based laser-based system maker Laser Photonics (LASE) plans to raise $15 million. A vertically integrated manufacturing company for photonics-based industrial products and solutions, including disruptive laser technologies. Have developed and standardized a line of laser cleaning equipment CleanTech™ a new approach to materials processing, surface preparation and industrial cleaning. CleanTech is proven technology, and CleanTech products have been sold to and are currently in use by Fortune 1000 companies, the U.S. military, and small businesses.

Lichen China (LICN) (Possible was expected last week)

China-based Lichen China (LICN) is expected to raise $25 million on Friday and begin trading on Monday, the company is a leading financial and taxation service provider in China in terms of revenue, according to the industry report of Frost & Sullivan. Have operated as a dedicated financial and taxation solution service specialist in China for over 17 years. Operate in the PRC under the “Lichen” brand. New business line of software and maintenance services in 2019 to expand software product offerings to enterprise customers, universities, colleges and educational institutes and have started to generate revenue from provision of such services since then.


US IPO Weekly Recap: 6 IPO Week

Last week six issuers began trading, AIG spin-off Corebridge $CRBG, the largest deal of 2022. Third Harmonic Bio (THRD) upsized, Nexalin Technology (NXL) and Wearable Devices (WLDS). Two companies up listed from the OTC, LINKBANCORP (LNKB) and Bio- RFID sensor technology company, Know Labs (KNW). 

IPO Week Recap

Issuers not included is because the company offered units with warrants attached and priced at a market cap less than $50 million, they will be excluded from Renaissance Capital’s 2022 IPO stats.

Corebridge Financial (CRBG)

AIG spin off Houston, Texas-based Corebridge Financial (CRBG) priced at the low end to raise $1.7 billion at a $13.8 billion market cap, the biggest IPO of 2022 thus far. It plans to pay quarterly dividends, offering a 4.4% annualized yield at the offer price. Parent AIG is selling 100% of the shares in the offering. All of the net proceeds from the offering will go to AIG. The shares are expected to trade on the New York Stock Exchange under the ticker symbol “CRBG.”

A top 10 life and annuity company with more than $350 billion in assets under management and administration as of June 30, 2022. Corebridge’s main business segments include individual retirement, group retirement, institutional markets, and life insurance. The company is profitable and has delivered solid growth, though it is exposed to market movements and could be impacted by weak economic conditions. Corebridge plans to pay quarterly dividends, offering a 4.1% annualized yield at the midpoint.

Corebridge Financial finished the week down 1%.

Third Harmonic Bio (THRD)

Third Harmonic Bio (THRD), a Phase 1 biotech targeting allergic and inflammatory diseases, upsized and priced at the midpoint to raise $185 million at a $681 million market cap. Backed by several blue-chip VCs, the company is developing an oral therapy, in-licensed from Novartis, which it believes can treat multiple indications, including urticaria (hives) and asthma. Third Harmonic has limited data available to support efficacy, and an unclear timeline to commercialization.

Lead Program, THB001, a First-In-Class, Highly Selective, Oral KIT Inhibitor in Development for Multiple Allergic and Inflammatory Conditions, Is Currently in Phase 1 Clinical Development. THRD submitted a CTA in Europe for our dose escalation Phase 1b proof-of-concept trial in chronic inducible urticaria in May 2022, expect to initiate the trial in the second half of 2022, and expect to report initial data from this trial in the second half of 2023.

Third Harmonic Bio finished the week up 6%.

  • Underwriters: Morgan Stanley, Jefferies, Cowen and LifeSci Capital
  • Headquarters Cambridge, MA
  • Founded 2019
  • Employees 16
  • Website: Third Harmonic Bio

LINKBANCORP (LNKB)

LINKBANCORP (LNKB) raised $34 million at a $108 million market cap. A Pennsylvania bank holding company registered under the Bank Holding Company Act of 1956, as amended, or the BHC Act. The corporation was formed in 2018 for community banking. In October 2018 they completed the acquisition of Stonebridge Bank, which was subsequently named LINKBANK. In September 2021, LINKBANCORP and GNB Financial Services, Inc., or GNBF, completed a strategic combination, resulting in The Gratz Bank becoming a wholly owned subsidiary. Operating 10 branches and one loan production office. 

LINKBANCORP finished the week unchanged

Nexalin Technology (Updated)

Nexalin Technology, which is developing non-invasive neurostimulation devices for various disorders, raised $10 million by offering 2.3 million units at $4.15, below the revised range of $6 to $7. Each unit still consists of one share of common stock and one warrant, exercisable at the IPO price. The company offered 0.8 million more units than anticipated. It originally planned to offer 1.7 million shares at $5 to $7, before lowering the offering and adding warrants this past April and narrowing the range the following May.

Nexalin has developed an easy-to-administer neurostimulation medical device, referred to as Generation 1 or Gen-1, that utilizes bioelectronic medical technology to treat anxiety and insomnia. Its original Gen-1 devices are cranial electrotherapy stimulation (CES) devices that emit waveform at 4 milliamps during treatment and are presently classified by the FDA as a Class II device.

The Gen-1 device has been utilized in clinical settings in the US, but due to the FDA’s reclassification of CES devices in 2019, Nexalin is required to file a new 510(k) Application to be approved for the sales and marketing of its devices for the treatment of anxiety and insomnia. The treatment of depression will require a Class III device and require a new premarket approval application.

Nexalin Technology plans to list on the Nasdaq under the symbol NXL. Maxim Group LLC acted as sole bookrunner on the deal.

Nexalin finished the week down 3.53%.

Know Labs (KNW)

OTC-listed Know Labs (KNW) raised $7 million at a $124 million market cap. Know Labs is focused on the development and commercialization of proprietary biosensor technologies. This is paired with their artificial intelligence, or AI, deep learning platform, capable of uniquely identifying and measuring almost any material or analyte using electromagnetic energy to detect, record, identify and measure the unique “signature” of said materials or analytes. They call these “Bio-RFID™” technology platform when pertaining to radio and microwave spectroscopy; and “ChromaID” technology platform when pertaining to optical spectroscopy.

KnowU Bio RFID device

Our journey begins with a focus on the nearly 500 million people living with Type 1 and Type 2 diabetes, and another 1.5 billion people suffering from pre-diabetes.

Know Labs finished the week down 3.53%.

Wearable Devices (WLDS)

Wearable Devices (WLDS), which is developing non-invasive neural input technology for consumer electronics raised $16 million at a $68 million market cap

Since our technology was introduced to the market in 2014, we have been working with both B2B and B2C customers as part of our push-pull strategy. We are now in the transition phase from research and development to commercialization of our technology into B2B products. At the same time, we are in the final stage of manufacturing our first B2C consumer product, the “Mudra Band” wristband, an aftermarket accessory band for the Apple Watch which allows touchless operation and control of the watch. 

Wearable Devices finished the week down 8.19%.

  • Underwriters Aegis Capital Corp
  • Headquarters Yokne’am Illit, Israel
  • Founded 2014
  • Employees 24
  • Website Home | Wearabledevices

“The IPO market is on pace for its worst year in decades, leaving fledgling companies with few options but to burn through cash while they wait for the stock market to calm. Late last year, hundreds of companies were in the final stages of preparing to go public, encouraged by the best 18 months ever for U.S. initial public offerings. Then a combination of factors—sky-high inflation, rising interest rates and Russia’s invasion of Ukraine—sent shock waves through the stock market. The IPO pipeline froze. So far this year, traditional IPOs have raised only $5.1 billion all told, Dealogic data show. Typically at this point in the year, traditional IPOs have raised around $33 billion… Last year at this point, these offerings raised more than $100 billion.”

August 22 – Wall Street Journal (By Corrie Driebusch)

IPO Lockup Period Expirations


Warrants to Entice New Issuance

Over the last month, a rising number of small deals have opted to offer warrants in their IPOs, either at the time of the initial filing or in a later amendment. In the context of an IPO, warrants give investors the right to purchase a new issuer’s stock at a specific price within a set time frame. That price is usually equal to or slightly greater than the offer price, and the time frame is often within five years after the IPO.

Warrants allow new issuers to both sweeten the pot for investors and provide an additional source of capital for themselves.

While offering warrants may help small deals get done in challenging conditions, it does not provide immunity from poor trading. From 2021 to date, issuers that have gone public after adding warrants are mostly underwater, averaging a -54% return from IPO.

Recent filers that have opted to offer warrants are all micro-caps and span a variety of industries. The group includes both companies filing for fresh listings, as well as those hoping to uplist from the OTC. Non-listed filers feature ramen restaurant chain Yoshiharu Global, Canadian psychotropics company Lucy Scientific Discovery, aquaculture company The tru Shrimp Companies, short-term rental provider CorpHousing Group, and agtech developer Opti-Harvest.

Source: Completely warranted: Small IPOs are enhancing their deals with warrants – Renaissance Capital

From The TradersCommunity Research Desk