Tonix Pharmaceuticals (NASDAQ:TNXP) stock is falling hard on Friday after the clinical-stage biopharmaceutical company priced a share offering.
According to a press release from Tonix has entered into a securities purchase agreement with certain healthcare institutional investors. That will have it selling 9 million shares of TNXP stock to them.
The company is selling these shares for 50 cents each, which is a discount compared to its prior closing price of 70 cents per share. To go along with that, each share comes with a Series A and Series B warrant to acquire another share of TNXP stock. These warrants have an exercise price of 50 cents each.
Tonix is expecting gross proceeds of $4.5 million from the stock offering. It also has plans for these funds. That includes using them as working capital, for general corporate purposes, expanding its manufacturing and research and development facilities, as well as acquisition or licensing of approved products and products in development.
How This Affects TNXP Stock
Investors aren’t reacting well to the stock offering news, and that has heavy trading pulling shares of TNXP down today. This has some 339,000 shares on the move as of this writing. That’s quickly closing in on its daily average trading volume of 410,000 shares, and the opening bell hasn’t even rung yet!
TNXP stock is down 29.2% as of Friday morning and is down 75.8% year-to-date as of Thursday’s close.
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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.
