Steven Mark Glassman, a director at NexGel, Inc. (NASDAQ:NXGL), has made a significant purchase of the company's common stock, according to a recent filing with the Securities and Exchange Commission. On November 20, Glassman acquired 9,090 shares at a price of $2.75 per share, amounting to a total transaction value of $24,997.
In addition to purchasing common stock, Glassman also acquired warrants to purchase an additional 4,545 shares of common stock. These warrants have a conversion or exercise price of $4.25 per share and are set to expire on November 20, 2029. The acquisition of these shares and warrants was part of NexGel's registered direct offering.
Following these transactions, Glassman now directly owns 154,155 shares of NexGel's common stock. As part of the agreement, he has committed not to sell or otherwise dispose of any of these shares or the shares underlying the warrants for a period of 180 days from the transaction date.
In other recent news, NEXGEL, the specialty hydrogel producer, posted record revenue in Q3 2024, with a significant year-over-year increase. The company's revenue reached $2.94 million, marking a 141% increase from the previous year, largely attributed to the acquisition of the Silly George brand and a strong performance in contract manufacturing. Despite this, NEXGEL reported a net loss of $754,000, an increase from the previous year's $552,000. The company's cash balance stood at $1.1 million as of September 30, 2024, with an additional $2 million raised for working capital and inventory.
New initiatives have been launched, including Histasolv, in collaboration with STADA, and a distribution agreement with Cintas (NASDAQ:CTAS) for SilverSeal. A human trial for a hydrogel application in laser hair removal is underway, with results expected in Q4 2024. Looking ahead, NEXGEL anticipates exceeding $3 million in revenue in Q4 2024 and potential revenue from the laser hair removal study is set for the first half of 2025. Expansion in Europe and the U.S. is also in progress, with products expected in stores by 2025. These are some of the recent developments concerning NEXGEL.
InvestingPro Insights
Steven Mark Glassman's recent purchase of NexGel (NASDAQ:NXGL) shares aligns with several positive trends highlighted by InvestingPro data. The company has shown impressive revenue growth, with a 90.57% increase in the last twelve months as of Q3 2024, and an even more striking 140.79% quarterly growth in Q3 2024. This robust growth supports one of the InvestingPro Tips, which indicates that analysts anticipate sales growth in the current year.
The stock's performance has been notably strong, with a 77.72% price total return over the past year and a 40.34% return over the last six months. This aligns with another InvestingPro Tip stating that NXGL has had a high return over the last year and is currently trading near its 52-week high, with the price at 93.52% of its peak.
However, investors should note that while revenue is growing, NexGel is not yet profitable. The company reported an operating income margin of -58.43% in the last twelve months, which corresponds to the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
For those interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for NexGel, providing a deeper understanding of the company's financial health and market position.
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