Why is the Mesoblast share price still not moving today?

Yet again, the Mesoblast Limited (ASX: MSB) share price will remain frozen on Monday.

This comes as the company requested that its shares be voluntarily suspended from trading, effective before market open today.

The biotech company’s shares last exchanged hands at 93 cents apiece on Wednesday 3 August.

What’s the latest with the Mesoblast share price?

Investors will need to wait a little longer before the Mesoblast share price reopens for trading on the ASX.

According to the release, the company is still undergoing its capital raising and needs more time to complete the process.

Mesoblast shares have rebounded strongly in recent times after extreme volatility hit the broader market from early June to July.

In the past month, the company’s shares are up 12%.

Mesoblast has asked that the voluntary suspension remain in place until Wednesday 10 August or following the release of the announcement, whichever comes first.

How much does Mesoblast have in the bank?

No details have been given in regards to what Mesoblast is intending to raise the funds for.

However, we do know from its quarterly report that the company had US$60.4 million in cash as of 30 June.

In addition, there was also US$40 million available to be drawn down from its existing financing facilities, subject to conditions.

With net cash used from operating activities of US$13.8 million, Mesoblast has an estimated 7.2 quarters of funding available

Mesoblast rexlemestrocel-L update

In mid-July, Mesoblast provided results from its phase 3 trial of rexlemestrocel-l in 565 patients suffering from chronic heart failure.

Management noted it received positive results from patients with class II/III chronic heart failure with reduced ejection fraction.

In particular, a single dose of rexlemestrocel-L along with standard of care reduced the incidence of heart attacks or strokes by 65%.

Furthermore, a 68% reduction was recorded in the rate of recurrent hospitalisations from non-fatal heart attacks or strokes compared with controls.

About the Mesoblast share price

Over the past 12 months, Mesoblast shares have tumbled by 53% following weakened investor sentiment.

Mesoblast has a price-to-earnings (P/E) ratio of 2.16 and commands a market capitalisation of roughly $604.92 million.

The post Why is the Mesoblast share price still not moving today? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Why is the Mesoblast share price on ice today?
• Why did the Mesoblast share price rocket 54% in July?
• 3 ASX All Ordinaries shares leaping 10% or more today
• Why JB Hi-Fi, Mesoblast, Pendal, and Woodside shares are pushing higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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