Inhibikase Therapeutics, Inc., a company specializing in biological products, has terminated a material definitive agreement with H.C. Wainwright & Co., LLC, according to a recent SEC filing. The At the Market Offering Agreement (ATM Agreement), established on February 1, 2024, allowed Inhibikase to sell shares of its common stock through the sales agent.
Under the agreement, the company had the option to issue and sell shares worth up to $5,659,255. It successfully sold 315,338 shares for a gross sales price of approximately $849,187.85. Despite current financial challenges, the stock has shown remarkable performance, with a 164% return over the past year. On May 20, 2024, Inhibikase filed a prospectus supplement to reduce the maximum aggregate gross sales price of the stock that could be offered to $50,000, excluding the shares already sold, after which no further sales occurred.
Inhibikase Therapeutics, headquartered in Atlanta, Georgia, is listed on The Nasdaq Stock Market LLC under the ticker NASDAQ:IKT. InvestingPro analysis indicates the stock is currently overvalued, though analysts maintain price targets ranging from $5 to $8 per share. The company's decision to end the ATM Agreement is a significant change in its approach to financing its operations and projects. Discover more insights and 8 additional ProTips with an InvestingPro subscription.
In other recent news, Inhibikase Therapeutics has secured approximately $110 million in private placement financing, led by Soleus Capital and other investors. This funding is expected to support the initiation of a Phase 2b trial for its lead drug candidate, IkT-001Pro, for pulmonary arterial hypertension (PAH). Concurrently, the company has reported a net loss of $5.0 million for the second quarter, with H.C. Wainwright adjusting its full-year 2024 earnings per share (EPS) forecast for Inhibikase to ($2.75), a decrease from the prior estimate.
Jefferies has initiated coverage on Inhibikase Therapeutics with a Buy rating, citing the potential of IkT-001Pro and the firm's strong financial position. However, H.C. Wainwright has revised its outlook on the company, reducing the price target to $5.00 from the previous $15.00, while maintaining a Buy recommendation.
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