Biostage Inc. (OTCMKTS:BSTG) Appoints New Chief Financial Officer and Releases Financial Updates
Biostage Inc. (OTCMKTS:BSTG) is a clinical-stage biotech company that has 8 issued U.S. patents, 2 issued China patents, 2 orphan-drug designations, and the possibility of two Priority Review Vouchers from the FDA. It uses cell therapy to regenerate organs inside the human body to treat cancer, trauma, and birth defects. The company has even performed the world’s first regeneration of an esophagus in a human cancer patient.
Market Stats
On Monday, BSTG stock ended flat at $5 with 92 shares, compared to its average volume of 951 shares. The stock moved within a range of $5.0000 – 5.0000 after opening trading at $5.
Biostage Announces Appointment of New Chief Financial Officer
Biostage, Inc. announced on August 8, 2022, about appointing Joseph Damasio as the company’s new Chief Financial Officer. He has significant experience in raising capital and running operations for small-cap biotech companies, and has acted as CFO, VP of Finance and Controller at Inhibikase Therapeutics, Cue Biopharma, and Pressure Biosciences.
Till date, Joe has managed multiple capitals raises, both private and public, including uplisting to NASDAQ. He has a BS in Accounting from the University of Massachusetts (Dartmouth), an MS in Finance from Boston College and an MBA from Boston College. He is a Massachusetts-licensed CPA, a former auditor with PriceWaterhouseCoopers, and formerly served in the U.S. Navy.
David Green, Biostage’s founder, Chair of the Board and interim Chief Executive Officer, has welcomed Joe on board and is hopeful that his skills and expertise will aid Biostage with its intended relisting on NASDAQ, future capital raises, and operational management. It is an important time for the company as they prepare for the clinical trial in patients with severe esophageal disease.
Biostage Reports Corporate Highlights and Second Quarter Financial Results
On August 4, 2022, Biostage, Inc. released its financial results and business updates for the second quarter ended June 30, 2022. On May 16, 2022, the company completed a private placement of its common stock with new and existing investors which generated net proceeds of approximately $5.1 million. A significant portion of these funds will be used to speed up the clinical development of Biostage’s lead product candidate, the BEI.
For the three months ended June 30, 2022, a net loss of approximately $1.3 million, or $0.12 per share, was reported, as compared to a net loss of $0.4 million, or $0.04 per share, for the three months ended June 30, 2021. It was due to the increase in general and administrative costs from higher legal and related costs relating to a wrongful death settlement, to their consolidated financial statements and decreases from a gain from forgiveness of Notes Payable of $0.4 million related to the company’s Paycheck Protection Program loan and a $0.1 million refund payment both incurred in the prior year quarter.
The company also announced the publication of a paper in the peer-reviewed Journal of Biomechanics, on June 15, 2022. It covered crucial data supporting the safety profile of the Biostage Esophageal Implant. It showed that the strength of the regenerated tissues at three different time points were comparable to the native tissue flanking the implant and the overall pressure required to burst through the tissue increased with increasing time post-surgery.
Traders Corner
BSTG stock is trading above the 20-Day and 50-Day Moving averages of $5.14 and $4.94 respectively. Moreover, the stock is trading above the 200-Day moving average of $4.24.
