Trevi Therapeutics (NASDAQ:TRVI) stock is slipping on Friday but that’s only after the biopharmaceutical company saw a massive rally yesterday.
So what was behind that increase in TRVI stock? The company announced a $55 million private placement. Trevi Therapeutics reached an agreement with healthcare-focused institutional investors for this deal.
Trevi Therapeutics is planning to use the funds from the private placement to further its development of Haduvio. This is a clinical-stage drug in development to treat chronic cough in idiopathic pulmonary fibrosis patients. Some of the funds will also be used for general corporate purposes.
The private placement includes 4,580,526 shares of TRVI stock and is priced at-the-market. It also includes pre-funded warrants to acquire up to an aggregate of 24,379,673 shares of the stock for $1.899 per warrant. Those warrants are exercisable immediately with an exercise price of $0.001 per share.
Frazier Life Sciences and Venrock Healthcare Capital Partners are acting as the co-leading investors in the private placement. Others taking part in the deal include Fairmount and New Enterprise Associates. The lead placement agent is Stifel with Needham & Company, Oppenheimer & Co., and Aegis Capital Corp acting as co-placement agents.
TRVI stock is also seeing lighter trading today after its rally on Thursday. As of this writing, around 533,000 shares have changed hands. The company’s daily average trading volume is just about 1 million shares.
TRVI stock is down 8.4% as of Friday morning but is up 245% since the start of the year.
Investors looking for more recent stock market news will want to keep reading!
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On the date of publication, William White 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.
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