Insiders buy Comera Life Sciences (CMRA) shares. Here’s why.
Shares of Comera life sciences (NASDAQ:CMRA) rose more than 30% following a wave of insider buying. As its name suggests, Comera is a life sciences company looking to improve traditional IV injections through its SQore platform. SQore addresses formulation challenges with “new patented excipients” that can improve ease of administration. Comera partners with pharmaceutical and biotechnology companies to help improve drug delivery and develop a portfolio of proprietary SQore therapeutic products.
Prior to September, no insider bought CMRA stock in 2022. Now even the CEO is buying stock. Let’s get into the details.
Insiders buy CMRA shares
CFO Michael Campbell started the wave of insider buying. On September 8, he bought 25,000 shares at an average price of $2.07. Prior to the purchase, he owned no shares in his company. The next day, Chairman and CEO Jeffrey Hackman bought 47,600 shares at an average price of $2.06. Like Campbell, Hackman owned no shares prior to the purchase. Then, on September 12, director James Sherblom bought 50,000 shares at an average price of $2.03. After the purchase, Sherblom now owns a total of 371,163 shares.
Also, it should be noted that none of the three purchases above were made through a pre-arranged 10b5-1 trading plan. Insiders often buy or sell stock in their own company using this plan to avoid insider trading charges. The exact reason for the purchases is unclear, although insiders only buy shares of their own company for one reason: they believe the price will rise.
On August 31, the company announced that it had entered into a purchase agreement with Business Solutions for the Arena. Pending approval from the U.S. Securities and Exchange Commission (SEC), Comera will have the right to sell Arena up to $15 million in stock over a three-year period. Hackman added, “The strengthening of our balance sheet will help us achieve our near-term strategic objectives, and we are grateful for Arena’s commitment to Comera’s success.”
Arena will also have an additional stock option of $15-30 million. Comera will use the proceeds for “working capital and general corporate purposes.”
At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.