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Progenity Inc. (NASDAQ:PROG) Stock Sees Profit Booking At Higher Level

Madison Hall , , , ,

Progenity Inc. (NASDAQ:PROG) fell 10% on Tuesday after a 20% jump in the past month after the company announced that it had received over $44 million in the exercise of warrants since August.

Market Stats

On Tuesday, PROG stock slumped 10.34% at $3.99 with more than 57.69 million shares, compared to its average volume of 78.41 million shares. The stock has moved within a range of $3.6850 – 4.7300 after opening trading at $4.20.

Progenity Strengthens its Liquidity Position

The company indicated that following the exercise of the previously issued warrants and other cash-raising transactions, it currently has adequate liquidity to support its R&D milestones for the next year. Progenity indicated that in Q4, it reduced the principal amount of its non-affiliates held 2025 senior convertible notes by 38%, and now the rest is held by Athyrium Capital Management LP, which is an affiliated holder.

Chief Financial Officer Eric d’Esparbes said that Progenity had made considerable progress in optimizing its capital structure and boosting its liquidity position over the past several months. d’Esparbes said that following the exercise of the previously issued warrants and finance raising transaction, the company has enough cash to fund operations for one year. Therefore, over the coming months, PROG is worth watching.

Key Quote

“Over the last several months, we made great strides in optimizing our capital structure and bolstering our liquidity position,” said Eric d’Esparbes, Chief Financial Officer of Progenity. “As a result of previously issued warrants being exercised and other capital-raising transactions, we believe our liquidity position provides sufficient runway to support achievement of our critical R&D milestones for at least the next twelve months.”

Traders Corner

PROG stock is trading above the 20-Day and 50-Day Moving averages of $3.76 and $2.57 respectively. Moreover, the stock is trading above the 200-Day moving average of $2.96. The stock is up 35% in the past month.

Madison Hall

After graduating from the University of Buffalo, Madison gained a real interest in the markets. She tends to be a swing trader and enjoys Pilates and yoga in her downtime.