Biostage Inc (OTCMKTS:BSTG) Stock In Downtrend: Appoints New CEO

Biostage Inc (OTCMKTS:BSTG) stock has been under pressure over the past few weeks with a fall of 35% in the past month.

Market Reaction

On Tuesday, BSTG stock ended lower by 1% to $1.98 with more than 2.14k shares, compared to its average volume of 3.50k shares. The stock has moved within a range of $1.9800 – 2.5999 after opening trade at $2.50.

Biostage Hires David Green as Chief Executive Officer

Biotechnology company having successfully done ‘first-in-human experience in esophageal cancer, Biostage Inc (OTCMKTS:BSTG), on November 30, 2021, announced the hiring of David Green as the CEO and appointing him to the Chairman of the Board of Directors.

Green, founder, and CEO of Zero Carbon LLC, an energy-efficiency business and has also been the former CEO and Chairman of Biostage, from which he had resigned in 2015 after being involved in a major road accident.

Green has also invested $250,000 in Biostage in a private placement through a combination of 72,464 shares of common stock as well as warrant purchase of 36,232 shares of common stock. This will be exercisable at $3.45 per share, a 50% premium to the closing price on November 26, 2021.

Green’s compensation will comprise of stock options and two-thirds of these will be based on achievement of milestones set by the Board while one-third will be provided over the next 12 months.

The CEO said that he is excited to be back running the company as the clinical results of its BiostageEsophageal Implant, done in Mayo Clinic in 2017, was positive. Green added that this is the first time that esophagus has been regenerated inside the human body.

Conducted by Dr. Dennis Wigle, M.D., Ph.D. and Chair of Thoracic Surgery, it was approved under the FDA’s E-IND protocol. The report was published in JTO Clinical and Research Reports in August 2021.

Traders Review

BSTG stock is trading below the 20-Day and 50-Day Moving averages of $2.55 and $2.93 respectively. However, the stock is trading above the 200-Day moving average of $1.97. The stock is down 48% over the past 3-month.

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