ATOS Stock: The Big News That Has Atossa Therapeutics Plunging 20% Today

Biotech stocks can be some of the best hypergrowth plays. With trial data, U.S. Food and Drug Administration rulings and patents always lurking around the corner, many put their money into the sector, betting on the next company to win big. However, it’s not all about winning. In fact, lots of these companies become strapped for cash and end up having to take desperate measures to get some operating capital. Atossa Therapeutics (NASDAQ:ATOS) is one of those plays, and ATOS stock is taking some punishing blows as a result.

A scientist holds a test tube while it is in a container

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So what do you need to know?

Based in Seattle, Atossa Therapeutics is a clinical-stage biotech company whose specialty is in therapeutic treatments of breast cancer. The company has come to investors’ attention in the last year especially as it shifted much of its focus to treating Covid-19 as well.

ATOS Stock Dips Sharply Ahead of Special Meeting

The company continues to conduct its clinical trials abroad. Meanwhile, Atossa is looking to offer up significantly more shares on the market. Today, the company announced a shareholder meeting it is setting for early September.

The special meeting will see ATOS shareholders vote to approve a contentious amendment to the company’s certificate to incorporation. If the amendment sees approval, the total number of common shares of stock will be raised by 100 million. The increase in the supply of common stock would help the company raise funds for operation. Currently, its operating cash flow stands at a $12.75 million loss.

Regardless of what this could mean for the company’s goings-on, stock dilution is something that most investors are not keen on. Indeed, the announcement of the meeting is already precipitating losses for ATOS stock. Its value is sinking nearly 21% since the news broke, and 34 million share of ATOS have traded hands, well over the daily average of 21 million.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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