We have been highlighting the continuous open market purchases of Repro-Med Systems (OOTC:REPR) shares by Joseph Manko of Horton Capital Management the last several months. The last filing was on February 17,2016 which disclosed a purchase of 21,900 shares bringing Horton Capital’s stake to over 4.6 million shares.
On March 9, 2016, REPR issued a press release responding to an FDA warning letter.
In our March 11, 2016 email we stated we would be watching the filings closely to see if Horton Capital buys more shares, as we believed this would indicate it has confidence that the company will likely resolve the FDA concerns or that the concerns may have been overblown in the first place.
Horton Capital Consistent Share Buying
Yesterday, shortly after the close Joseph Manko filed a Form 4 showing he had purchased another 70,500 shares at open market prices.
On April 1, 2016, we stated our belief that if the FDA investigation ends with minor adjustments to rectify labeling issues as opposed to a costly FDA decision to reclassify REPR’s flagship product from class II to class III, shares will regain and surpass recent highs of $0.59. However, the risk of harsher sanctions cannot be ruled out, such as product recalls which would obviously have an adverse effect on future revenues.