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Hemogenyx Share Price Targets 3p After $0.8M Deal

Hemogenyx (LON: HEMO) share price has broken above the key resistance level of 2.37p. The shares of the British pharmaceutical company surged by 38% after signing a deal with Prevail Partners. The stock is currenlty trading at 2.5p, down 0.1% till press time.

The British equities continued to extend gains on Tuesday ahead of the Bank Of England meeting later in the week. Till press time, the FTSE 100 had gained 13.88 points and was up 0.18% for the day. The gain experienced today in the UK equities can be attributed to the recovery in the shares of commodity-related stocks.

Hemogenyx Secures Investment From Prevail Brothers

On Monday, Hemogenyx made headlines after the investment firm Previal Brothers invested $830,000 into the British pharmaceutical company. This move will give Prevail Brothers a 0.96% stake in Hemogenyx. Around 11 million shares will be sold at $0.075 per share according to the announced deal.

Earlier this year, Hemogenyx Pharmaceuticals issued 162,250,000 shares to raise £4.1 million. This money will allow the British pharmaceutical company to bear the development costs of the HEMO/CAR-T product along with other product developments. Hemogenyx shares are trading 120.3% above their yearly low.

Hemogenyx Share Price Forecast

The LON: HEMO price chart depicts that the price is trading 7.46% above the 2.37p resistance level. The price traded below 2.37p for about 8 months before breaking through it. The chart also shows the price trading 34% above the 200 MA, which confirms the bullish outlook in the stock.

The Hemogenyx share price forecast will become very bullish if the price gains strength above 2.37p. In this case, I expect the price to target the 0.618 fib retracement, which lies at 3.08p. However, if the price breaks below 2.37p once again, then bears may try to fill the 1.89p-2.12p price gap.

You can also follow me on Twitter, where I’ll be sharing my updated outlook on LON: HEMO and personal trades on other UK shares.

Hemogenyx share price chart