PainReform (NASDAQ:PRFX) stock is falling on Wednesday after the company announced a concurrent registered direct offering and private placement.
The registered direct offering has PainReform agreeing to sell 301,230 shares of PRFX stock at a price of $9 per share. The private placement has it issuing unregistered warrants to buy up to 301,230 shares of its stock. These warrants will also have an exercise price of $9 per share.
PainReform notes that it expects to raise some $2.7 million from the offering and private placement. It will use these funds to fuel its research and development and clinical trials, as well as for working capital and general corporate purposes.
Recent PFRX Stock Volatility
It’s not just this news that explains why PRFX stock is down today. Instead, the company’s shares are also giving up some of the gains they saw during normal trading hours on Tuesday. Shares of PRFX stock underwent a massive rally, closing out Tuesday up 307.4%.
That incredible rise in price came alongside heavy trading of PainReform’s shares. That saw some 10.7 million shares change hands by the time markets closed yesterday. For comparison, the company’s daily average trading volume is about 331,000 shares.
As for stock movement today, some 407,000 shares of PRFX stock have changed hands this morning. That has the stock down 40% as of this writing.
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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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