Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) was sold off on Tuesday after the company announced a public offering of stock and warrants on Monday.
Shares declined a sharp 25.04%, closing at $0.46, after 4.26 million changed hands.
In a pre-market notice yesterday, Tonix announced a price of $0.55 per unit of common share and warrant.
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) prices new offering
Tonix said it wlll issue 9,500,000 units, consisting of 9,500,000 shares of common, and warrants to purchase an aggregate of 4,750,000 shares of common stock, at an offering price of $0.55 per unit. The warrants may be exercised within five years at a price of $0.63 per share.
The company expects to raise about $5.2 million from the offering.
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) shifts focus
Tonix will use the above proceeds for the “continued development of TNX-102 SL (cyclobenzaprine HCl sublingual tablets) for the treatment of posttraumatic stress disorder (PTSD), including completion of the first interim analysis in the phase 3 study in military-related PTSD, to further develop other pipeline programs, for working capital and other general corporate purposes, and possibly acquisitions of other companies, products or technologies, though no such acquisitions are currently contemplated.”
Investors may recall that in early September Tonix said it would stop testing its drug titled TNX-102 SL in patients with fibromyalgia after the failure of a late-stage trial.
Tonix said it would instead focus on testing TNX-102 SL for post-traumatic stress disorder (PTSD). PTSD is a condition in which patients suffer from disturbed sleep and nightmares, and are sometimes driven to depression and suicide.
“Despite achieving clinically meaningful results from AFFIRM, we have greater clarity on the regulatory path forward in our PTSD program,” said Seth Lederman, M.D., president and chief executive officer. “We will therefore discontinue the fibromyalgia program in order to fully focus Tonix’s resources on advancing our potential breakthrough PTSD program to Phase 3.”