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PolarityTE (NASDAQ:PTE) shares have seen increasing volume over the last two days and are now up 56% in pre-market trading.

PolarityTE

The company is a biotechnology company developing regenerative tissue products. PolarityTE’s first regenerative tissue product is SkinTE®. PolarityTE has an open investigational new drug application (IND) for SkinTE® with the U.S. Food and Drug Administration (FDA) and is now pursuing the first of two pivotal studies on SkinTE® needed to support a biologics license application (BLA) for a chronic cutaneous ulcer indication.

Earnings

Operating loss for the fiscal year ended December 31, 2021, was $33.7M, an improvement of 27% from the operating loss of $45.9M for 2020. The Company had cash and cash equivalents of $19.4M and working capital of $17.7M at December 31, 2021. Gross proceeds of $5M were raised through a registered direct offering of preferred stock on March 16th 2022. Stock offerings are often a killer of momentum for small caps. This recent offering will mean traders will have less fear overnight, which will lead to an extended move.

Low Float

PTE has a float of 84.5 million and a market cap of $18.8M (yesterday’s close). What are some levels to watch?

The share price hit a pre-market high of $0.42 this morning. The first target for the price will be $0.59. If volume holds up, the price may reach early 2022 levels of over $0.80.

Chart provided by TradingView

Top Gainer

With PTE being a top gainer today, many eyes will be on this which will dive volume higher. Both longs and shorts will battle, so expect volatility. If trading PTE long, keep an eye on pre-market levels for entry points and scale in.

AlphaPicks owns shares in PTE. To buy shares and crypto, register here with our preferred partner, EToro.

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