Vaso Active's Odd Pedigree

Two other companies, Able Energy(ABLE) and BioDelivery Sciences(BDSI), are both selling well below their IPO prices. Shares of Able, which went public at $7 a share, were most recently trading around $2.58, while BioDelivery, priced at $5.25, is trading around $3.75.

Matt Meister, Kashner Davidson's president and chief executive, defended his firm's reputation and underwriting track record. He said the regulatory issues at Kashner Davidson are in the past and there's always a risk in taking companies, especially small ones, public. Vaso Active's success, he said, doesn't depend on the sales of a single product, but the company's ability to develop its transdermal technology.

"This is a company we think that may have a technology platform for transdermal delivery," said Meister. "It's more the technology than the product itself. It looks like it could be pretty good, with some sound science behind it."

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