NRX Pharmaceuticals (NASDAQ:NRXP) stock is falling on Thursday after the clinical-stage biopharmaceutical company announced a proposed public offering for its shares.
NRX Pharmaceuticals is selling $2 million worth of NRXP stock for $3.30 per share in this offering. The company also has a 45-day option for underwriters to acquire another 91,050 shares of its stock. EF Hutton LLC is serving as the sole book-running manager for the offering.
NRX Pharmaceuticals intends to use funds from the offering for working capital and general corporate. That includes the creation of a national treatment protocol and safety database and paying down debts.
What This Means for NRXP Stock
A public offering is of concern to NRXP shareholders as it dilutes their stakes in the company. That’s one of the big reasons why NRX Pharmaceuticals is seeing its shares fall this morning. Another is the offering price being below its prior closing price of $4.18 per share.
On top of that, NRX Pharmaceuticals only just avoided being delisted. The company got confirmation that it is no longer in danger of being delisted due to its low trading price.
NRX Pharmaceuticals avoided delisting with a reverse stock split earlier this month. That saw it consolidate 10 shares into a single share to boost its stock price.
NRXP stock is down 28.8% as of Thursday morning.
Investors looking for more of the most recent stock market stories are in luck!
We have all of the hottest stock market news traders need to know about on Thursday! That includes everything happening with shares of Canaan (NASDAQ:CAN) stock, MicroCloud Hologram (NASDAQ:HOLO) and Tian Ruixiang (NASDAQ:TIRX) stock today. All of this news is available at the following links!
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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.
