Hong Kong-based Harbour BioMed on Sunday exercised its warrant to acquire the common stock in Spruce Biosciences Inc. (NASDAQ:SPRB) .Following this transaction, Harbour BioMed holds approximately 3.8% of the total outstanding shares of Spruce and approximately 3.1% of the fully diluted shares of Spruce.The warrant was initially issued to Harbour BioMed’s subsidiary and other minority shareholders of HBM Alpha Therapeutics (HBMAT), a biotechnology company incubated by Harbour BioMed, in connection with a lic ...

Core Insights - Harbour BioMed has exercised its warrant to acquire common stock in Spruce Biosciences, holding approximately 3.8% of total outstanding shares and 3.1% of fully diluted shares of Spruce [1][3] Company Overview - Harbour BioMed is a global biopharmaceutical company focused on discovering and developing novel antibody therapeutics in immunology and oncology [4] - The company is enhancing its pipeline through internal R&D, strategic global collaborations, and selective acquisitions [4] Collaboration Details - The warrant was issued in connection with a license and collaboration agreement between HBM Alpha Therapeutics and Spruce, aimed at advancing the development of SPR202, a monoclonal antibody for various disorders [2] - This collaboration signifies a shift from a traditional licensor-licensee relationship to a strategic partnership, emphasizing a shared commitment to developing transformative therapies [3]

Loan Agreement and Borrower Obligations - Borrower has entered into a loan facility agreement with Lenders, with a commitment amount not exceeding the specified limit[7] - Each loan will be evidenced by a separate note, with principal and interest payable in U.S. Dollars[8] - Borrower must provide a written borrowing request at least five business days prior to the borrowing date[9] - Basic interest on outstanding loans will accrue daily at the designated rate, with default interest applicable if not paid at maturity[11] - A late charge of 5% will be applied if any scheduled payment is more than five days late, with a minimum charge of $50[14] - Borrower is required to grant security interests in all collateral to secure timely payment of obligations[17] - Borrower must deliver monthly financial statements within 30 days after each month-end, ensuring timely financial reporting[56] - Year-end financial statements must be provided within 90 days, including an audit report certified by an independent accountant[57] - Borrower is required to maintain adequate books and records in accordance with GAAP, ensuring financial integrity[64] - Borrower must obtain and maintain insurance with a minimum rating of "A" from recognized carriers, protecting against potential risks[63] - Borrower must promptly notify lenders of any litigation or regulatory proceedings where claims exceed $250,000, ensuring transparency[51] - Borrower must pay all taxes and governmental assessments exceeding $50,000 before delinquency[66] - Borrower is prohibited from incurring any indebtedness except for Permitted Indebtedness[76] - Borrower cannot create or permit any liens on its property except for Permitted Liens[77] - Borrower is restricted from paying dividends or making distributions with respect to its capital stock, with specific exceptions[78] - Borrower cannot liquidate, dissolve, or enter into any Change of Control without meeting certain conditions[79] - Borrower is not allowed to sell or transfer any assets except under specified conditions[80] - Borrower must maintain accurate records relating to collateral and allow inspections by agents[68] - Borrower is required to provide true and complete information in all communications related to its products[74] - Borrower must not engage in any material line of business other than its current operations[83] - Borrower is restricted from acquiring or creating any subsidiaries without prior notice and approval from agents[89] - Borrower is permitted to incur Personal Property Leases of Equipment not exceeding $250,000 in aggregate payments per calendar year[93] - Borrower must comply with anti-corruption laws, including the Foreign Corrupt Practices Act and the United Kingdom Bribery Act[94] Events of Default and Agent Rights - Events of Default include failure to pay principal or interest when due, which must continue for three business days or more[96] - Any representation or warranty made by Borrower that is false or misleading in a material respect constitutes an Event of Default[97] - Borrower must assemble and make available the Collateral upon request from Agent after an Event of Default[111] - Agent may sell all or any part of the Collateral at public or private sales upon the occurrence of an Event of Default[106] - Borrower will reimburse Agent for any amounts paid on its behalf, which will bear interest at the Default Rate[113] - Agent has the authority to compromise with obligors regarding Rights to Payment during the continuance of an Event of Default[112] - Borrower must permit Agent to enter premises where Collateral is located to take possession or conduct sales[111] - Any judgment against Borrower exceeding the Threshold Amount that remains unsatisfied for 20 days constitutes an Event of Default[102] - The Agent has the authority to take actions to protect its interests in the Collateral, including executing documents and collecting payments without notice to the Borrower during an Event of Default[116] - Proceeds from the disposition of Collateral will first cover documented costs and expenses incurred by the Agent, followed by repayment of Obligations to Lenders in a specified order[121] - If the Proceeds from the sale of Collateral are insufficient to cover all costs and Obligations, the Borrower will be liable for any deficiency[123] - The Agent is not liable for any claims or damages incurred by the Borrower due to ordinary negligence, and this indemnification survives the payment of all Obligations[127][137] - Borrower must reimburse the Agent and Lenders for all costs and expenses incurred in connection with the Loan Documents, including legal fees, which will bear interest if not paid within 45 days[138] Legal and Compliance Matters - Borrower represents that its financial statements accurately reflect its financial condition in accordance with GAAP[26] - No default or event of default has occurred and is continuing as of the latest date[28] - Borrower is the unconditional legal and beneficial owner of the collateral, free from any liens[30] - Borrower has complied with all applicable laws necessary to conduct its business[23] - Borrower has met the minimum funding requirements of ERISA for employee benefit plans, with no events likely to incur material liabilities[36] - Borrower has complied with all provisions of the Federal Fair Labor Standards Act, ensuring regulatory compliance[36] - Borrower is not required to register as an "investment company" under the Investment Company Act of 1940, maintaining operational flexibility[36] Financial Performance and Projections - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[1] - User data showed an increase in active users to 10 million, up from 8 million in the previous quarter, indicating a 25% growth[2] - The company provided guidance for the next quarter, projecting revenue between $1.6 billion and $1.8 billion, which reflects a growth rate of 10% to 20%[3] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[4] - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[5] - Market expansion efforts include entering three new international markets, projected to increase user base by 15%[6] - The company completed a strategic acquisition of a smaller competitor for $300 million, expected to enhance market share by 5%[7] - Operating expenses increased by 15% to $600 million, primarily due to increased marketing efforts[8] - The company reported a net profit margin of 12%, slightly down from 14% in the previous quarter[9] - Cash reserves stand at $400 million, providing a strong liquidity position for future investments[10]

Upgrades - CFRA upgraded Pool Corp. (POOL) to Buy from Hold with a price target of $304 [2] - Piper Sandler upgraded SEI Investments (SEIC) to Overweight from Neutral with a price target of $102, increased from $93, citing SEI as a "clear beneficiary" of the expanding alternatives landscape [2] - TD Cowen upgraded Ametek (AME) to Buy from Hold with a price target of $230, up from $180, noting that backlog remains near highs and is expected to grow [3] Downgrades - TD Cowen downgraded Janus Henderson (JHG) to Hold from Buy with a price target of $49 after the company agreed to be acquired for $7.4 billion or $49.00 per share [4] - Piper Sandler downgraded Clearwater Analytics (CWAN) to Neutral from Overweight with a price target of $24.55, down from $27, following its agreement to be acquired for $24.55 per share in cash [4] - BMO Capital downgraded Brown & Brown (BRO) to Market Perform from Outperform with a price target of $88, down from $90, due to lower consensus organic growth estimates for 2026 [5] - Evercore ISI downgraded Coty (COTY) to In Line from Outperform with a price target of $7, citing a lack of visibility on timing and catalysts for potential value unlock [6] Initiations - Oppenheimer initiated coverage of Spruce Biosciences (SPRB) with an Outperform rating and a price target of $283, supported by FDA confirmation of compelling clinical biomarker data [7] - LifeSci Capital initiated coverage of Sionna Therapeutics (SION) with an Outperform rating and a price target of $60, highlighting multiple quality shots on goal with its therapies [7] - Oppenheimer initiated coverage of Aardvark Therapeutics (AARD) with an Outperform rating and a price target of $35, noting the company's differentiated obesity franchise [7] - JonesResearch initiated coverage of Septerna (SEPN) with a Buy rating and a price target of $43, forecasting $2.5 billion in unadjusted U.S. peak sales in 2035 [7] - Loop Capital initiated coverage of Malibu Boats (MBUU) with a Buy rating and a price target of $34, indicating the marine industry is in the late stages of inventory rationalization [7]

Core Insights - Several biotechnology and pharmaceutical companies experienced significant gains in after-hours trading due to corporate updates and upcoming event announcements [1] Company Updates - Jasper Therapeutics, Inc. (JSPR) saw a 21.51% increase to $2.09 after hours, following the announcement of a webinar on December 2 to present findings from the BEACON study and preliminary data from the ETESIAN study [2] - NRx Pharmaceuticals, Inc. (NRXP) rose 13.39% to $2.71 after hours, with the CEO scheduled to present at NobleCon21 on December 3, discussing the company's expanded focus and clinical revenue progress [3] - Unicycive Therapeutics, Inc. (UNCY) increased by 5.42% to $6.33, with the CEO participating in two upcoming events, although no new announcements were made on Monday [4] - Spruce Biosciences, Inc. (SPRB) shares rose 4.68% to $87.00 after reporting a net loss of $8.2 million for the quarter ending September 30, 2025, an improvement from a net loss of $8.7 million in the previous year [5] - Evaxion A/S (EVAX) added 3.96% to $5.65, announcing progress in its CMV vaccine program with new protective data and ongoing preclinical development [6] - Solana Company (HSDT) gained 3.48% to $3.87, reporting a net loss of $352.8 million for the third quarter, a significant increase from a net loss of $3.7 million in the prior-year period, with revenue totaling $697,000 [7] - Protara Therapeutics, Inc. (TARA) rose 5.04% to $7.08, planning a conference call on December 3 to review interim data from its Phase 2 trial of TARA-002 in bladder cancer patients [8]

Financial Performance - For the nine months ended September 30, 2025, the company incurred a net loss of $24.3 million, compared to a net loss of $29.5 million for the same period in 2024, reflecting a decrease of $5.2 million [94]. - The total operating expenses for the nine months ended September 30, 2025, were $25.4 million, down from $36.3 million in 2024, indicating a reduction of $10.9 million [114]. - The company incurred interest expense of $84,000 for the nine months ended September 30, 2025, compared to $251,000 in 2024, reflecting a decrease of $167,000 [114]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $26.9 million, an improvement of $8.4 million compared to $35.3 million in 2024 [140]. - Net cash used in operating activities decreased by $8.4 million during the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to lower payments from decreased clinical development activities [141]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $1.2 million, compared to $1.0 million for the same period in 2024, with principal payments on the Term Loan being the main component [142]. Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $15.4 million, a decrease of $9.5 million from $25.0 million in 2024 [114]. - Research and development expenses decreased by $1.5 million to $5.0 million for the three months ended September 30, 2025, compared to $6.6 million for the same period in 2024 [116]. - For the nine months ended September 30, 2025, research and development expenses decreased by $9.5 million to $15.4 million, down from $24.9 million in 2024 [117]. - The decrease in clinical development expenses for the nine months was $6.4 million, primarily due to the discontinuation of the tildacerfont CAH development program, which accounted for $11.0 million [117]. - The company anticipates an increase in research and development expenses as it advances TA-ERT through an anticipated biologics license application in Q1 2026 [118]. Cash and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $10.7 million, which is expected to be insufficient to fund operations for at least the next 12 months [96]. - As of September 30, 2025, the company had cash and cash equivalents of $10.7 million, down from $38.8 million as of December 31, 2024 [124]. - The company raised approximately $50.0 million through a private placement transaction on October 7, 2025, selling 502,181 shares of common stock [125]. - As of September 30, 2025, cash and cash equivalents totaled $10.7 million, consisting of bank deposits and money market funds, with no excessive risk anticipated in future investments [149]. Company Status and Future Outlook - The company has no products approved for commercial sale and has not generated any product revenue to date [93]. - The company anticipates submitting a biologics license application for TA-ERT in the first quarter of 2026, targeting the treatment of Sanfilippo Syndrome Type B [92]. - The company expects to continue incurring net losses and will need to finance future cash needs through various means, including equity offerings and collaborations [126]. - The accumulated deficit increased to $274.6 million as of September 30, 2025, compared to $250.3 million at the end of 2024 [124]. - The company is classified as an "emerging growth company" under the JOBS Act and may retain this status until December 31, 2025, unless certain revenue or debt thresholds are met [146]. Accounting and Risk Management - There were no changes to critical accounting estimates during the nine months ended September 30, 2025, compared to those discussed in the Annual Report [145]. - The company has not engaged in hedging transactions to manage exposure to interest rate risk [150]. - Operating results are exposed to changes in foreign currency exchange rates, but there was no material impact on results for the periods presented [151]. - A hypothetical 1% change in interest rates as of September 30, 2025, would not have a material effect on the financial statements [150]. - The company does not expect anticipated changes in inflation to have a material effect on its business, financial condition, or results of operations for future reporting periods [152]. Stock and Shareholder Information - The company executed a one-for-seventy-five reverse stock split on August 4, 2025, retroactively adjusting share numbers and prices in financial statements [99]. - Payments made for asset acquisitions amounted to $7.1 million during the nine months ended September 30, 2025 [141]. - Collaboration revenue recognized in the nine months ended September 30, 2024, was $4.2 million, while no collaboration revenue was recognized in 2025 [115].

Financial Performance - Cash and cash equivalents as of September 30, 2025, were $10.7 million, which does not include the $50.0 million from the recent financing[5] - Research and Development (R&D) expenses for Q3 2025 were $5.0 million, a decrease from $6.6 million in Q3 2024[5] - General and Administrative (G&A) expenses for Q3 2025 were $3.2 million, compared to $3.5 million in Q3 2024[8] - Total operating expenses for Q3 2025 were $8.2 million, down from $10.0 million in Q3 2024[8] - Net loss for Q3 2025 was $8.2 million, compared to a net loss of $8.7 million in Q3 2024[8] Financing Activities - Spruce Biosciences completed a $50.0 million private placement financing in October 2025, resulting in gross proceeds before offering expenses[5] - The company expects to fund its operating plan into the fourth quarter of 2026 with current cash and proceeds from the recent financing[5] Regulatory Developments - The company received Breakthrough Therapy Designation from the FDA for TA-ERT for the treatment of MPS IIIB in October 2025[5] - The biologics license application submission for TA-ERT is on track for the first quarter of 2026[1] Share Information - Common shares outstanding as of September 30, 2025, were 563,491[8]

Core Insights - In September, the OTC market in the U.S. welcomed 30 new companies, a decrease of 9 compared to the previous month [1] - There were 5 companies that transitioned from OTC to the main board, an increase of 3 from August [1] - The new listings came from 6 countries, with Canada accounting for 47% of the new companies [1] - As of September 30, 2025, there are 12,278 companies listed on the U.S. OTC market, with a transaction volume of $61.2 billion for the month and $527.1 billion year-to-date [1] New Listings - The following companies were newly listed in September: - EMPIRE METALS LTD (OTCQX: EPMLF) - VERUSA HOLDING A S (OTCQX: VRSHF) - ACG Metals Limited (OTCQX: ACGAF) - FIRST NORDIC METALS CORP. (OTCQX: FNMCF) - Bitcoin Treasury Corporation (OTCQX: BTCFF) - Radisson Mining Resources Inc. (OTCQX: RMRDF) - Bonvenu Bancorp, Inc. (OTCQX: BBNA) - Associated Capital Group, Inc. (OTCQX: ACGP) - Horizon Kinetics Holding Corporation (OTCQX: HKHC) - Capstone Green Energy Holdings Inc. (OTCQX: CGEH) - Pacifica Silver Corp. (OTCQB: PAGFF) - BIONXT SOLUTIONS INC. (OTCQB: BNXTF) - Metalsource Mining Inc. (OTCQB: SFRIF) - Orogen Royalties Inc (OTCQB: OGNNF) - SUPERQ QUANTUM COMPUTING INC (OTCQB: QBTQF) - WESTERN STAR RES INC. (OTCQB: WSRIF) - Top End Energy Limited (OTCQB: SERPY, TNDEF) - Hamak Gold Limited (OTCQB: HASTF) - IMA TECH (OTCQB: IMAA) - TOKENWELL PLATFORMS INC. (OTCQB: TWELF) - Crypto Blockchain Industries, SA (OTCQB: CBIPF) - GREENLAND RES INC. (OTCQB: GRLRF) - Nexcel Metals Corp. (OTCQB: NXXCF) - Atex Resources Inc. (OTCQB: ATXRF) - Longevity Health Holdings, Inc. (OTCQB: XAGE) - PRINCE SILVER CORP (OTCQB: PRNCF) - Grayscale Near Trust (OTCQB: GSNR) - ConnectM Technology Solutions, Inc. (OTCQB: CNTM) - Eco Bright Future, Inc. (OTCQB: EBFI) - dMY Squared Technology Group, Inc. (OTCQB: DMYY, DMYYW) [1] Companies Transitioning to Main Board - Sono Group N.V. transitioned to NASDAQ with the ticker SSM on September 5, 2025, focusing on solar technology development and applications [2] - Sol Strategies, Inc. transitioned to NASDAQ with the ticker STKE on September 9, 2025, specializing in Solana blockchain infrastructure [3] - Spruce Biosciences, Inc. transitioned to NASDAQ with the ticker SPRB on September 15, 2025, focusing on innovative therapies for rare endocrine diseases [7] - Grayscale transitioned to NYSE MKT with the ticker GDLC on September 19, 2025, as a multi-asset cryptocurrency fund [8] - BTQ Technologies Corp. transitioned to NASDAQ with the ticker BTQ on September 26, 2025, focusing on quantum computing and cybersecurity [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Spruce Biosciences, Inc. (SPRB) - SPRB currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [2][3] - The stock has experienced significant price increases, with shares up 1868.25% over the past week, while the Zacks Medical - Biomedical and Genetics industry has seen a decline of 0.34% during the same period [5] - Over the last quarter, SPRB shares have risen 1860.75%, and are up 403.62% over the past year, significantly outperforming the S&P 500, which has moved 6.33% and 14.66% respectively [6] Trading Volume - SPRB's average 20-day trading volume is 1,450,847 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for SPRB has increased, while none have decreased, leading to a consensus estimate improvement from -$51.13 to -$2.83 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive sentiment [9] Conclusion - Considering the strong momentum indicators and positive earnings outlook, SPRB is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

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