CHATHAM, N.J. - Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), a biopharmaceutical company, has announced a new public offering of its shares. The transaction includes the sale of 7,096,740 shares of common stock or equivalent pre-funded warrants priced at $0.57 per share or $0.569 per pre-funded warrant. The closing of the offering is expected on or about July 10, 2024, subject to customary closing conditions.
The company anticipates raising approximately $4 million in gross proceeds before accounting for placement agent fees and other estimated expenses related to the offering. Tonix intends to allocate the net proceeds towards working capital and general corporate uses.
These include the preparation of a new drug application for its Tonmya™ product candidate for fibromyalgia patients and potentially satisfying a portion of its existing debt.
Dawson James Securities, Inc. is serving as the sole placement agent for the offering. The offering is conducted under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC). Prospective investors can access the preliminary prospectus supplement and accompanying prospectus on the SEC's website.
Tonix's focus is on developing treatments for central nervous system disorders, and its pipeline includes several other drug candidates aimed at addressing conditions such as acute stress reaction and fibromyalgia-type Long COVID. The company also has an immunology portfolio with candidates for organ transplant rejection, autoimmunity, and cancer.
This press release is an announcement of the offering and is not an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The information is based on a press release statement from Tonix Pharmaceuticals Holding Corp.
In other recent news, Tonix Pharmaceuticals has secured a $34 million contract with the Defense Threat Reduction Agency (DTRA) for the development of broad-spectrum antiviral agents. The funding will support the advancement of the company's TNX-4200 program, aimed at enhancing the medical readiness of U.S. military personnel against biological threats.
The company also announced a public offering of approximately 7.1 million shares, projected to raise $4 million before fees and expenses, with Dawson James Securities, Inc. serving as the placement agent.
This move is part of Tonix's strategy to advance the new drug application for Tonmya™, a fibromyalgia treatment candidate, and repay debt. Meanwhile, the FDA has granted Rare Pediatric Disease Designation to Tonix's drug candidate TNX-2900 for the treatment of Prader-Willi syndrome in children and adolescents.
However, Noble Capital recently revised its price target for Tonix's shares, lowering it to $1.50 from the previous $10.00, while maintaining an Outperform rating on the stock. These recent developments mark significant progress for Tonix Pharmaceuticals in both its research and financial endeavors.
InvestingPro Insights
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) is navigating challenging market conditions, as evidenced by the recent announcement of its public share offering. Investors considering participating in this offering may find the following insights from InvestingPro valuable.
InvestingPro data highlights that TNXP is trading at a low Price / Book multiple of 0.06 as of the last twelve months leading up to Q1 2024. This metric can often indicate that a stock is undervalued relative to its assets, which may appeal to value-oriented investors. Additionally, with a market capitalization of just $7 million, Tonix is considered a micro-cap stock, which typically offers higher growth potential but also comes with greater risk and volatility.
Among the InvestingPro Tips, two key points stand out. Firstly, analysts have revised their earnings upwards for the upcoming period, suggesting a more optimistic outlook on the company's financial performance. Secondly, the Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, which can sometimes indicate a potential reversal if the market sentiment shifts.
It's important to note, however, that the company is not expected to be profitable this year, and it has been quickly burning through cash. These factors, combined with high price volatility, underscore the risks associated with investing in TNXP. For those interested in a more in-depth analysis, there are an additional 13 InvestingPro Tips available for TNXP at InvestingPro. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive toolset for evaluating investment opportunities like TNXP.
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