Shares in Provectus Biopharmaceuticals Inc (NYSEMKT:PVCT) closed yesterday at $0.0739, down 17.89%.
Nearly 6.96 million shares were traded. Provectus is a development stage biopharma company investigating new therapies for the treatment of skin cancer, liver cancer and breast cancer. Provectus’ investigational oncology drug, PV-10, is an ablative immunotherapy under investigation in solid tumor cancers.
Provectus Biopharmaceuticals Inc (NYSEMKT:PVCT) files Form S-1 for rights issue
Provectus said yesterday that it filed a registration statement with the SEC for a rights offering to its existing shareholders.
The company said it will distribute, on a record date yet to be decided, non-transferable subscription rights to purchase units that would each comprise shares of common stock, as well as attached warrants to purchase common stock.
Price, size, price per unit, exercise price of warrants and other salient features of the offering are yet to be announced by the company.
According to the company the proceeds of the issue will be utilized for the development of PV-10, as well as for working capital and general corporate purposes.
The company indicated that it may be necessary for it to engineer a reverse stock split to maintain its listing on the NYSE.
Provectus Biopharmaceuticals Inc (NYSEMKT:PVCT) made a public offering of equity of about $6 million in August
Investors may recall that on August 25, the shares of Provectus fell sharply following the pricing of its “best efforts” public offering of 240,000 shares of convertible preferred stock (initially convertible into up to 24 million shares of common stock) and warrants to purchase up to 24 million shares of common stock at a price of $25.00 for a unit comprising one share of Series B Convertible Preferred Stock and a warrant to purchase one share of common stock @ $0.275.
Shares crashed by 48% following that announcement.
The rights issue will further dilute equity, and shareholders therefore have a lot of expectations from PV-10.