The ResApp (ASX:RAP) share price jumped more than 10% this morning before falling back to trade flat for the day so far. Here’s why.
The post Why the ResApp (ASX:RAP) share price opened 10% higher today appeared first on The Motley Fool Australia. –
Shares in ResApp Health Ltd (ASX: RAP) surged higher on open today after the company announced its wearable device has achieved CE mark certification. In early trade, the ResApp share price leapt 10.53% to 6.3 cents. However, at the time of writing, ResApp shares have retreated back to 5.8 cents, up 1.75% for the day so far.
Let’s take a look at what the digital health company announced.
What caused the ResApp share price to jump?
The ResApp share price was on the rise this morning after the company declared its wearable, cough monitoring device has achieved CE mark certification as a “Class I medical device accessory”. A CE mark indicates that a product has conformed with the necessary health, safety and environmental standards to be sold in the European Union market.
According to ResApp:
The device has very high accuracy and precision. It can identify over 93% of coughs events, with less than 1% of identified events being false positives. Unlike existing solutions, it does not require manual review of cough sounds by an analyst, ensuring a less labour-intensive and more rapid approach to monitoring.
ResApp developed the device in conjunction with Avanti Capital Group subsidiary, Avanti Med. The group is a United Kingdom-based venture capital company. ResApp will now issue Avanti with 6.25 million shares with an approximate value of $500,000 under its 15% placement capacity.
Words from the CEO
ResApp managing director and CEO Dr Tony Keating said
Achieving CE Mark is a major achievement, and we are confident that our wearable device will provide a number of commercial opportunities.
Discussions with potential partners, including global pharmaceutical companies, to introduce the wearable device into clinical trial settings have already commenced. The availability of the device provides a strong value proposition to potential partners and allows ResApp another opportunity to commercialise new products aimed at assessing and predicting respiratory disease progression.
ResApp share price snapshot
Despite today’s positive news, the ResApp share price has been on the slide of late. Over the past twelve months, ResApp shares have fallen by more than 68% from 18 cents to their current level.
At its current valuation, ResApp has a market capitalisation of around $43.1 million.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Here’s why the Resapp (ASX:RAP) share price closed 5% lower
- Why the ResApp (ASX:RAP) share price is climbing higher
Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.