Tonix Pharmaceuticals (NASDAQ:TNXP) stock is taking a beating on Friday after the company announced a public stock offering.
That public stock offering has the company selling 7 million shares of TNXP stock at a price of $1 per share. Each of these shares also comes with a single warrant to purchase another share of TNXP stock and have an exercise price of $1.
Tonix Pharmaceuticals is expecting to generate gross proceeds of $7 million from this public offering. It will use these funds for working capital and general corporate purposes, expansion of its manufacturing and research and development facilities, as well as the acquisition or licensing of approved products and products in development.
A.G.P./Alliance Global Partners is serving as the lead placement agent for the offering. Alongside it is Brookline Capital Markets acting as the co-placement agent for the TNXP stock offering.
What This Means For TNXP Stock
With this stock offering, Tonix Pharmaceuticals is increasing the total number of shares issued. That means it’s also diluting the stakes of current shareholders in the company. That’s likely one reason the stock is dropping today.
Another reason for the fall in the price of TNXP stock is the offering price. The stock offering is only $1 per share, which is a significant discount over the company’s closing price of $1.78 per share on Thursday.
With today’s stock offering, shares of TNXP are seeing heavy trading. As of this writing, more than 323,000 shares of the stock have changed hands. That’s already above its daily average trading volume of about 284,000 shares.
TNXP stock is down 42.7% as of Friday morning.
Investors keeping an eye on all of the latest stock market news are in the right place!
InvestorPlace is home to all of the hottest stock market news that traders need to know about on Friday! A few examples include why shares of SIGA Technologies (NASDAQ:SIGA) and Invo Bioscience (NASDAQ:INVO) stock are up, as well as the biggest pre-market stock movers this morning. You can read all about these matters at the links below!
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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.
