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    Stock Corrections: MedAvail Holdings Inc. (MDVL) Down After Hours. Why?

    By Gule Rukhsar

    Apr 11,2022

    10:39 PM UTC

    On Friday, certain new developments regarding the technology-enabled pharmacy company, MedAvail Holdings Inc. (MDVL) came to light. The company announced inducement grant awards to its newly-hired employees.

    Source: Hire an esquire

    Thus, the stock witnessed an upswing of over 39% at its closing price of $1.96 per share in the regular session. Consequently, this upsurge was then followed by corrections as the stock subtracted a value of 7.65% in the after-hours to reach a value of $1.81 per share.

    MDVL’s Inducement Grants

    As declared in its SEC filings and announcement, MDVL’s board’s compensation committee has approved inducement grants for its new employees. Further, the new employees include Steven Hess (Exec VP/ GM, SpotRx), Matthew Broome (Exec VP/ GM, Technology), Robert McClune (Senior VP, Data & Analytics), and Craig Holtgrave (Senior VP, Sales & Marketing).

    A total of 853,000 shares of the company’s stock were awarded in form of inducement stock options to the employees. Furthermore, the stock options granted under Nasdaq rules have an exercise price of $1.96 per share. The details of the stock options are as follows:

    • Stock options of 131,000 common stock shares and RSUs settleable in 131,000 shares, to Mr. Hess and Mr. Broome.
    • Stock options of 82,250 common stock shares and RSUs covering 82,250 shares, to Mr. McClune and Mr. Holtgrave.

    Market Overview

    The pharmaceutical industry is going through rapid changes. With much scope for expansion and growth, the pharmacy industry is increasingly becoming dependent on technology. The reason for the pharmaceutical market’s shift towards technology is the inevitable digitalization and technological development. But, the outbreak of Covid-19 acted as a catalyst for this shift, and now the market is heavily invested in being technological.

    Additionally, artificial intelligence in the healthcare market alone is expected to reach $31.3 billion mark by 2025.

    Where Does MDVL Stand?

    As the industry becomes more and more technologically developed, MDVL is one of the pharmaceutical companies that are more technology-enabled. From the availability of a self-service pharmacy to a mobile application, kiosk, and drive-thru solution, MDVL has it all.

    Having significantly strengthened its leadership team with many changes and new additions, the company is looking forward to over $8.8 million in revenue for Q1 2022.

    Conclusion

    In conclusion, remaining largely bullish throughout 2022 so far, MDVL stock has been on a roller-coaster ride of gains followed by profit booking and corrections. The latest gains stem from inducement grants awarded to new employees in form of stock options. Following this, the stock once again fell under corrections.

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