Aquestive Therapeutics (AQST) PT Raised to $12 at H.C. Wainwright

H.C. Wainwright analyst Raghuram Selvaraju raised the price target on Aquestive Therapeutics (NASDAQ: AQST) to $12.00 (from $10.00) while maintaining a Buy rating.

The analyst commented, "Yesterday afternoon, Aquestive Therapeutics announced that it has completed a private placement of $70M of 12.5% senior secured notes due June 2025 and warrants, and refinanced its existing credit facility. The indenture governing the notes provides opportunity to issue up to $30M of additional notes under certain conditions for a total possible note issuance of $100M. The final $30M of additional notes would be available for Aquestive to draw down at its discretion upon achievement of the following: (1) completion of the submission of the Libervant New Drug Application (NDA), which we envisage prior to the end of 2019; and (2) approval of Libervant by the FDA, which we believe could occur during 2H20. The first milestone would trigger the availability of $10M in additional capital, while the second would trigger availability of a further $20M. Aquestive may, however, elect to draw down the entire $30M solely upon Libervant approval in the U.S. In our view, this debt refinancing substantially reduces the quarterly interest payment burden and provides further financial flexibility during the period that may elapse before Aquestive can achieve sustainable profitability. Investors should be aware that this new debt is entirely fixed-rate, involves no principal payments until September 30, 2021, and matures on June 30, 2025. We reiterate our Buy rating, while raising our 12-month price target to $12 from the previous $10 per share, reflecting a slightly lower discount rate of 14% vs. the prior 15% and the impact of less equity dilution than previously forecast. The debt holders have received warrants to purchase up to 2M shares of common stock at $4.25 per share, which expire at the same point at which the debt matures."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• Piper Sandler Reiterates Overweight Rating on Estee Lauder (EL), 'F4Q26 Preview'