CHATHAM, N.J. - Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), a biopharmaceutical company, announced today its intention to offer and sell shares of its common stock, or pre-funded warrants as an alternative. The offering is contingent on market conditions, and there are no guarantees regarding the completion, size, or terms of the offering. The company aims to allocate the net proceeds for working capital, general corporate purposes, and to advance its drug candidate Tonmya™ for fibromyalgia toward a new drug application.
The sole placement agent for this offering is Dawson James Securities, Inc. This move follows an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC). Details of the offering will be outlined in a prospectus supplement and accompanying prospectus to be filed with the SEC.
Tonix is focused on developing therapies for central nervous system disorders and other medical conditions. Its main goal is to submit a New Drug Application to the FDA for Tonmya™, designed for fibromyalgia management, in the latter half of 2024. The company also has other CNS and immunology product candidates in its development pipeline.
In other recent news, Tonix Pharmaceuticals has regained compliance with Nasdaq's minimum bid price requirement, ensuring its continued listing on the Nasdaq Capital Market. The biopharmaceutical company has also announced a $4 million public offering of its common stock, intending to use the proceeds for working capital and general corporate purposes. This includes funding preparations for a new drug application for Tonmya™, a treatment candidate for fibromyalgia. The sale, which consists of 3,753,558 shares priced at $1.065 each, is expected to close in June 2024, with Dawson James Securities, Inc. serving as the sole placement agent.
Moreover, Tonix Pharmaceuticals is preparing to submit a New Drug Application for Tonmya, following two successful Phase 3 trials. The FDA has also 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 are some of the recent developments from Tonix Pharmaceuticals.
InvestingPro Insights
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) is navigating a challenging financial landscape as it seeks to raise capital for its operations and drug development programs. With a market capitalization of just $5.23 million, the company's financial metrics reflect the high-risk nature of investing in early-stage biopharmaceutical ventures. The price/book ratio, which stands at a mere 0.04 as of the last twelve months as of Q1 2024, indicates that the stock is trading at a low multiple of its book value, potentially signaling undervaluation relative to its assets.
However, this potential undervaluation comes with significant concerns. InvestingPro Tips suggest that analysts have not only revised their earnings upwards for the upcoming period, but also note that the company is quickly burning through cash, which raises questions about its long-term financial sustainability. Additionally, the stock has experienced high volatility, with price movements indicating a tumultuous performance over the past year, including trading near its 52-week low.
Investors considering TNXP should be aware that the company has not been profitable over the last twelve months, and analysts do not anticipate profitability this year either. The stock has also not paid dividends, which is typical for companies prioritizing growth and development over immediate returns to shareholders.
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