Aditx Therapeutics (ADTX): A speculative dive

Aditx Therapeutics (ADTX) is developing technologies specifically focused on improving the health of the immune system through immune monitoring and reprogramming. The immune monitoring technology is designed to provide a personalized comprehensive profile of the immune system. The immune reprogramming technology is currently at the pre-clinical stage and is designed to retrain the immune system to induce tolerance with an objective of addressing rejection of transplanted organs, autoimmune diseases, and allergies.

Aditx Therapeutics went IPO at a price of $9/share back on 06/30/2020, and ended up closing the day at $5.40/share. The stock continued to trend downward over the next month, consolidating between $3-$3.60 before ADTX gave an announcement which gives us the catalyst for this current swing.

Why now may be a great opportunity to buy Aditx Therapeutics (ADTX)

EUA application was filed on August 24th, which caused a 15% spike in the share price. With a EUA, Aditxt would be allowed to distribute AditxtScore throughout the United States.

On August 31st, Aditx announced an offering to sell 2.4m units at an offering price of $4/unit. Each unit will immediately separate into one share of common stock, one Series A-1 Warrant, and one Series B-1 Warrant. The Series A-1 Warrants permit the holder to purchase one share of common stock at an exercise price of $3.19 per share and expire after 5 years. The Series B-1 Warrants are exercisable at $5.00 per share and expire after 5 years. The proceeds from this offering will be used to develop and introduce the AditxtScore immune monitoring platform and for working capital and general corporate purposes. IMPORTANT: Aditx has granted the underwriters a 45-day option to purchase up to an additional 360,000 shares of common stock and/or Series A-1 warrants to purchase up to an aggregate of 360,000 shares of common stock and Series B-1 warrants to purchase up to an aggregate of 360,000 shares of common stock. This 45 day option ends this week. This means no upcoming offering in sight.

Not only this, Aditxt also ensured shareholders that it was their intent to begin pilot programs utilizing AditxtScore for Covid-19, as early as Q4 2020. On September 3rd, Aditxt signed a collaboration agreement with Soveo Diagnostics to commercialize AditxtScore starting this quarter. This collaboration allows Aditxt the sales channels and operational foundation to commercialize AditxtScore.

It is also incredibly important to realize that this is not only a Covid play. AditxtScore has applications in all sorts of medical diagnostics including predicting immune responses to vaccination and early detection of type 1 diabetes.

Aditx Therapeutics has been crafting the ultimate management team as well. On September 10th, Aditx announced Dr Drew Pinsky would be joining the team as senior advisor to AditxtScore. Dr Drew is a well known media personality as well as a practicing physician, internist, and addiction medicine specialist. Quote from Dr Drew:

“I believe that the AditxtScore platform could be game changing because it has the ability to alter how we keep abreast of changes in our immune system. The initial focus will be to further develop AditxtScore for COVID-19 to try to detect vaccine-induced or natural immunity to COVID-19 and other infectious agents. I believe knowing whether or not someone is infected simply isn’t enough. We must work to be able to evaluate someone’s immune status in order to make informed decisions as we reopen the global economy. I look forward to working with the team at Aditxt and contributing to the development and roll out of the AditxtScore platform.”

The board also recently added former-chief medical officer and assistant secretary for health affairs of the U.S. Department of Homeland Security, Dr Jeffrey Runge to their ranks. “His experience as a creator and developer of regulation as Chief Medical Officer of a newly formed governmental agency will provide tremendous guidance and assistance to Aditxt as we embark on the next stages of our growth.”

ALSO: Altium Capital Management recently reported a 9.9% passive stake in Aditx Therapeutics back in July. Why does this matter? This is why:

We focus on healthcare companies whose science and clinical status are hard for most investors to understand. Altium’s team of doctors, scientists and investment professionals digs deep into these companies to develop a strong investment thesis, sometimes acting as partners for the companies as they raise capital to fund their next stages of development.

Our investment universe is mostly concentrated in US-based small/micro-cap public companies, with significant near/medium-term catalysts, and those raising capital from institutional investors for the first time. – Altium Capital Management

Is Aditx Therapeutics (ADTX) a good investment?

Shares of Aditx Therapeutics (ADTX) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next of years. The majority of the metrics point to this investment being highly attractive.

Jay Lorrence
Jay Lorrence

Investor of 12 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.

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