Today, one of the big market movers is Atossa Therapeutics (NASDAQ:ATOS). This Seattle-based clinical stage biopharma company has seen a significant amount of volatility this year. Today, shares of ATOS stock are up approximately 9% at the time of writing. Indeed, these sorts of moves seem to be par for the course of late.
This oncology and infectious disease-focused biopharma play has been on a number of wild rides this year. Shares have swung wildly from under $1 per share at the start of the year to around $4.50 in February, down to $1.50 in April, and up to nearly $10 in June. Today, investors can buy shares of ATOS for around $4 per share.
Given the volatility this stock has seen, perhaps a double-digit move on a given day is expected. For most stocks, it isn’t. However, this is a company that has a number of catalysts the market appears to be struggling to price in.
Let’s dive into one such catalyst coming up on Oct. 7.
Upcoming Shareholder Vote Stoking Enthusiasm in ATOS Stock
Earlier this week, Atossa delayed its shareholder vote to Oct. 7. A vote was scheduled for the Sept. 7 meeting; however, it appears the company did not have enough votes secured to approved the proposal.
What the company is proposing is to increase its authorized shares of common stock. A majority of shareholders must approve the deal, and while 73% of the votes counted have been in favor, not enough votes have been cast in favor to approve this proposal.
Essentially, the company intends to allow for additional shares to be issued to “complete and/or support acquisitions, collaborations, partnerships and licensing transactions.” In other words, this would provide the company’s management team with the ability to utilize the company’s equity for various strategic purposes. More flexibility is generally a good thing. However, investors who have not voted in favor (the other 27%) may be wary of the dilutive effects such share issuances bring.
Whether a month is enough time for Atossa to whip up the votes it needs to pass this proposal is up for debate. However, today’s pop appears to be the result of investors pricing in a chance this proposal may not go through (again, related to dilution).
This will certainly be an intriguing stock to watch from here.
On the date of publication, Chris MacDonald 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 InvestorPlace.com Publishing Guidelines.