FEMY: Reddit Misinterprets FDA Trial Advancement as Final Approval

Reddit users are exhibiting strong bullish sentiment around FEMY, with multiple users reporting going “all-in” or taking full positions following recent news[1]. The community is actively discussing:

• Perceived short attacks and potential naked shorting after price pullbacks
• Technical price targets around $1, with users citing warrant strike prices ($0.73-$1.10) as creating a baseline support level
• Expectations of continued momentum if $0.80 support holds
• Some users planning to hold positions long-term while trimming on spikes

However, there appears to be significant confusion about the nature of the FDA announcement, with many treating it as final product approval rather than trial advancement.

Critical discrepancies exist between Reddit sentiment and factual developments:

• FEMY has NOT received FDA approval for FemBloc - this is FDA IDE approval to advance to final trial phase (Part B) only[2]
• Final FDA approval decision expected in 2026 following completion of pivotal trial
• International approvals achieved: Europe (June 2025), UK (August 2025), New Zealand (September 2025)

• $12M senior secured convertible notes with 8.5% interest, 10-year maturity
• Potential total proceeds up to $58M if all warrants exercised
• Conversion price of $0.73 per share (15% premium) for up to 16.4M shares

• Severe decline from $5.71 (March 2024) to $0.49 (November 2024) - over 90% drop
• Short interest showed volatility with spikes in March, August, and September 2024
• Trading volume spikes occurred during key announcements and financing events

The core issue is a fundamental misunderstanding of the regulatory milestone. Reddit users are treating FDA IDE approval (which allows trial advancement) as equivalent to final FDA approval (which permits commercial marketing). This creates a significant disconnect between market expectations and reality.

The warrant strike prices cited by Reddit users ($0.73-$1.10) do create some technical support, but the conversion price of $0.73 also represents a potential dilution overhang. The financing provides necessary runway but comes with high interest costs (8.5%) and significant dilution potential.

• Regulatory Misinterpretation
  : Market may be pricing in final approval when only trial advancement has occurred
• Clinical Trial Risk
  : Final FDA approval still pending with typical 70-80% success rates for medical devices
• Dilution Risk
  : Up to 16.4M shares could be issued through note conversion
• Financial Pressure
  : High 8.5% interest rate on convertible notes
• Technical Weakness
  : Stock down 90% from 2024 highs, indicating ongoing institutional selling

• First-Mover Advantage
  : FemBloc positioned as first non-surgical permanent birth control alternative
• International Progress
  : Multiple international approvals validate the technology
• Funding Security
  : $12M financing provides runway through key trial milestones
• Short Squeeze Potential
  : If short interest remains elevated and positive catalysts emerge