CHATHAM, N.J. - Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP), a biopharmaceutical company, announced today a new public offering of its common stock, to raise approximately $4 million. The offering includes 3,753,558 shares priced at $1.065 each, and the sale is expected to close on or about June 13, 2024, subject to customary closing conditions.
The proceeds from the sale are intended for use as working capital and for general corporate purposes. This includes funding preparations for a new drug application for Tonmya™, a candidate for treating fibromyalgia, and potentially satisfying a portion of the company's existing debt.
Dawson James Securities, Inc. is the sole placement agent for the transaction. The offering is made possible through an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC). Details of the offering are available in a prospectus supplement and accompanying prospectus filed with the SEC.
Tonix focuses on the development of therapeutics for central nervous system disorders, including a priority to submit a New Drug Application for Tonmya™ to the FDA in the second half of 2024. Tonix's portfolio also includes treatments for acute stress reaction and fibromyalgia-type Long COVID, as well as immunology products for organ transplant rejection, autoimmunity, and cancer.
The company's commercial subsidiary, Tonix Medicines, markets two products for acute migraine treatment in adults. It is important to note that Tonix's product candidates are investigational and have not yet been approved for any indication.
The information regarding the stock offering is based on a press release statement from Tonix Pharmaceuticals.
In other recent news, the company secured approximately $4.4 million in a registered direct offering to institutional investors. However, Noble Capital 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.
Tonix is preparing to submit a New Drug Application for Tonmya, a potential non-opioid treatment for fibromyalgia, following two successful Phase 3 trials.
Furthermore, the FDA granted Rare Pediatric Disease Designation to Tonix's drug candidate TNX-2900 for the treatment of Prader-Willi syndrome in children and adolescents. These are the latest developments in the company's ongoing efforts to advance its portfolio of treatments for central nervous system disorders and other diseases.
InvestingPro Insights
Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) is navigating a challenging financial landscape as it seeks to raise capital through its latest public offering. The company's current market capitalization stands at a modest USD 6.36 million, reflecting the broader market's assessment of its value. While Tonix's revenue for the last twelve months as of Q1 2024 was reported at USD 10.25 million, the firm has had significant operating losses, with an operating income margin of -1032.48%, indicating substantial expenses relative to its income.
InvestingPro Tips suggest several critical factors that investors may wish to consider. Analysts have recently revised their earnings estimates upwards for the upcoming period, which could indicate potential optimism about the company's future performance. Additionally, the stock is trading at a low Price / Book multiple of 0.06, which could suggest that the stock is undervalued relative to the company's book value.
However, it's crucial to note that analysts do not expect Tonix to be profitable this year, and the stock has experienced significant volatility, with a price total return of -96.17% over the past year. This volatility is also reflected in the company's stock price, which is trading near its 52-week low and has taken substantial hits over various timeframes, including the last week, month, and three months.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available that cover various aspects of Tonix Pharmaceuticals' financial health and market performance. To access these insights and potentially enhance investment strategies, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With these resources, investors can make more informed decisions aligned with their financial goals.
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