TLDR
- CervoMed (CRVO) jumped 32.3% in pre-market trading Tuesday after revealing a manager buyout
- Director Joshua Boger purchased 955,414 shares at $3.14 per share on June 11 via private placement.
- The total purchase value was approximately $3 million through the Joshua S. Boger 2021 Trust
- Each unit included one common share, one Series B Warrant and one Series C Warrant
- HC Wainwright has a Buy rating on CRVO with a price target of $25.00
CervoMed (CRVO) stock jumped 32.3% in premarket trading Tuesday after a Form 4 filing revealed that director Joshua Boger made a multi-million dollar purchase of the company’s stock.
Boger, through the Joshua S. Boger 2021 Trust, purchased 955,414 shares at $3.14 per share on June 11. The total deal was approximately $3 million.
The stock was under pressure before this filing. CRVO was trading at $2.48 before the news broke, down about 15% from the previous week and down 70% over the past six months.
The purchase was made as part of a private placement that CervoMed says is expected to generate gross proceeds of approximately $10.5 million. The transaction was structured pursuant to a securities purchase agreement dated June 9 with the Booger Fund and other accredited investors.
Each unit in the deposit came with one share of common stock, one Series B warrant, and one Series C warrant. The Series B warrants carry an exercise price of $3.32, are immediately exercisable, and expire on June 11, 2031. The Series C warrants have an exercise price of $3.14, also immediately exercisable, and expire on June 11, 2027.
CEO John J. Allam also participated in the financing, making this a leadership-level landmark deal.
Ownership after the transaction
Following the transaction, Boger now owns 1,795,865 shares indirectly through two trusts – the JSB 2021 Trust and The Amy S. Boger 2021 Trust – and another 216,817 shares directly.
The orders include a cap on ownership. Boger and its affiliates cannot own more than 19.99% of the outstanding common stock of CervoMed upon exercise of the warrants. If this limit is violated, it can instead exercise previously funded orders under the same restrictions.
CervoMed’s market cap was $23.42 million before the pre-market move. InvestingPro pegs the fair value at $3.40, suggesting the stock was trading below that level as of Tuesday.
What analysts say
HC Wainwright reiterated a Buy rating on CRVO with a price target of $25.00. The call came after CervoMed presented data from the phase 2b RewinD-LB trial of neflamapimod at the AD/PD 2026 conference.
The trial is studying neflamapimod to treat dementia caused by Lewy bodies. Trial data showed that patients with lower plasma pTau181 levels experienced greater clinical benefits from treatment.
Separately, CervoMed shareholders approved all proposals at the company’s 2026 annual meeting, including the election of eight directors. Boger was among those re-elected to the board of directors.
As of the Form 4 filing, Boger’s Trust owns 1,600,117 shares, and the Amy S. Boger 2021 Trust owns 195,748 shares, which it manages as sole trustee.
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