PaxMedica (NASDAQ:PXMD) stock is taking off on Friday after the biopharmaceutical company entered into an investment agreement with Lincoln Park Capital Fund.
According to a press release, this covers a purchase agreement and registration rights agreement for up to $20 million. That gives PaxMedica the right to sell as much as $20 million worth of PXMD stock to Lincoln Park Capital Fund.
Investors will note that PaxMedica has no obligation to sell shares of PXMD stock to Lincoln Park Capital Fund if it does not want to. They should also keep in mind that this agreement covers a 30-month period.
The deal also has the price of share sales determined by market prices. There’s also no upper limit for how much shares of PXMD stock can cost during the sale. Lincoln Park Capital Fund also won’t take part in any short selling of the company’s shares.
What’s Behind the Investment Agreement?
PaxMedica is using the deal with Lincoln Park Capital Fund to gain funds as it needs them. The company says it intends to use the money acquired from the share sales for a couple of things, including “general corporate purposes” and working capital.
PXMD stock investors are reacting positively to the news with heavy trading of shares today. As of this writing, more than 13 million shares have changed hands. That’s well above the company’s daily average trading volume of about 3 million shares.
PXMD stock is up 51% as of Friday morning.
There’s more stock market news for traders to dive into below!
InvestorPlace has all of that news ready to go for Friday! That includes what has shares of Foot Locker (NYSE:FL) and Palo Alto Networks (NASDAQ:PANW) stock moving, as well as the biggest pre-market stock movers from this morning. You can read up on all of that news at the following links!
More Friday Stock Market News
- What Is Going on With Foot Locker (FL) Stock Today?
- Palo Alto (PANW) Stock Jumps on Earnings, Cider Security Buy
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
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On the date of publication, William White did not hold (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.