The Invo Bioscience Inc (NASDAQ: INVO) stock price soared 81.7% despite the lack of news releases from the company. However, a closer investigation reveals that the company recently filed a form S-1 registration of securities and a form 8-K/A current report with the SEC.
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To understand today’s massive rally in the INVO stock price, we have to look at Friday’s Form S-1, which the company filed to issue more shares to meet certain obligations it had made previously to particular investors who had bought warrants in the past.
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The biotech company issued 50,000 shares of Common Stock as a commitment fee under the February Purchase Agreement, and 150,000 shares of Common Stock issued as a commitment fee under that specific Equity Purchase Agreement, dated February 3, 2023, between the Company and the February Investor.
Thirdly, the company also issued common shares issuable upon the exercise of certain stock purchase warrants issued in March 2023, where the investor could purchase up to 5,520,000 shares of Common Stock at an exercise price of $0.63 per share.
The new shares were issued to some institutional investors in a private placement according to a securities purchase agreement dated March 23, 2023. The company also plans to issue shares to convert a convertible debenture with an outstanding principal amount of $100,000.
The above debenture had accrued interest of $1,775 through June 23, 2023, and has a fixed conversion price of $0.52, translating into 195,721 shares of common stock.
INVO Bioscience had also filed a Form 8-K/A amendment that describes the deals it had entered into, including the purchase of Wisconsin Fertility Institute for a combined purchase price of $10 million. The company will pay for the clinic in four instalments of $2.5 million on each anniversary.
Interestingly, all the agreements into which INVO Bioscience is entering value its shares higher than its current trading price. Investors entering into deals with the company assign more value to its shares by a higher price than the current market price.
*This is not investment advice.
Invo Bioscience (INVO) stock price.
The INVO Bioscience (INVO) stock price soared 81.70% to trade at $0.2998, from Friday’s closing price of $0.1650.
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