Pulmatrix Inc. (PULM) stock has been taking a dip of -19.62% today pre-market buoying at $2.13 as of 6:55 a.m. EST. The clinical-stage biopharmaceutical company has added +33.17% in the last session settling at $2.65. The decline came following today’s announcement by the company of a registered direct offering of nearly 20 million shares.
Here’s the real scoop:
This morning, Pulmatrix announced it has entered into definitive agreements for the sale of 20,000,000 shares of the Company’s common stock with healthcare-focused institutional investors. The company is offering common stock priced at the market in a registered direct offering under Nasdaq rules for $2.00 per share. Assuming that all closing conditions are satisfied, the closing of the offering is expected to occur on or about February 16, 2021.
As the exclusive placement agent for the offering, H.C. Wainwright & Co. will be acting on behalf of the company. Before expenses, including placement agent fees and offering expenses, Pulmatrix is likely to have gross proceeds from this offering of $40,000,000. This offering will enable the Company to use the net proceeds as working capital and for general corporate needs.
Getting to know the Company:
Using proprietary iSPERSE technologies, Pulmatrix develops inhaled products with better efficacy and reduced side effects that are targeted against severe pulmonary and non-pulmonary diseases. The company’s patented pharmaceutical portfolio is initially focused on improving treatments for acute lung illnesses.
The portfolio comprises Pulmazole, which is an antifungal treatment for ABPA patients, and PUR1800, a narrow-spectrum kinase for the treatment of patients with lung cancer. ISPERSE, a patented engineered dry powder distribution platform, is part of Pulmatrix, which aims to improve lung function by optimizing local concentrations and reducing adverse effects.
In the last session, the company closed the trading at $2.65, but the announcement of the offering at a per-share price of $2.00 came negatively impacting. So the share’s market price is likely been leveling itself with the offering price announced by the company.