This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Escalon Down on Placement

The wild ride for micro-cap Escalon Medical (ESMC - Get Report) got bumpier after the bell Wednesday when the company announced it had privately placed 800,000 common shares at a sharp discount to their current market price.

Escalon said it sold 800,000 shares at $13 each, plus warrants on 120,000 common shares exercisable at $16.50 each, to qualified investors in an unregistered public offering, raising $9.8 million after expenses. The company said it will use the money to strengthen its balance sheet and for general corporate purposes.

The discount to market was narrowing in after-hours trading as the stock fell $2.66, or 14%, to $16.50. The shares closed regular trading at $19.16, up $2.81, or 17%, on seven times average volume.

The deal will raise the company's outstanding share count to 5,015,829, not including shares covered by the warrants. The company had 4.2 million average shares outstanding in its second quarter ended Dec. 31.

Escalon's chart has been typical of many small-float companies over the last few weeks, with the stock jumping from a March 5 close of $15.50 to $20.25 the next trading day. A company official attributed the runup to a bullish newspaper story. They fell back to close at $16.35 Tuesday before running up again in today's session. The stock traded below $10 in mid-February.

A phone call to the company's corporate headquarters went unanswered Wednesday evening.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ESMC $0.87 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs