- Avenue Therapeutics ( NASDAQ: ATXI ) is down 10.8% after-hours after the firm has priced its underwritten public offering of 3,636,365 common and pre-funded units.
- Each common unit consists of one share of common stock and one warrant to purchase one share of common stock, and each pre-funded unit consists of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common stock.
- Each share of common stock is being sold together with one warrant at a combined purchase price of $3.30/common unit (or $3.2999 per pre-funded unit after reducing $0.0001 attributable to the exercise price of the pre-funded warrants).
- Underwriter are granted a 45-day option to purchase additional shares of common stock, representing 15% of the number of shares of common stock and additional warrants, representing up to 15% of the warrants sold in the base offering, resulting in an increase in the total gross proceeds of the offering to ~$13.8M, if the over-allotment option is exercised in full.
- Offering is expected to close on October 11, 2022.
- Net proceeds from the offering, together with its existing cash, will be used to repurchase all of the shares of its common stock held by InvaGen Pharmaceuticals, with the remainder to be used for general corporate purposes and working capital, including the development of its drug product candidates.
For further details see:
Avenue Therapeutics shares slide on pricing $12M securities offering