Citius Pharmaceuticals Inc ( CTXR ) shares are trading lower by 14.2% to $3.75 during Wednesday’s session after the company announced a $3 million registered direct offering priced at-the-market under Nasdaq rules.

The company will issue 743,496 shares of common stock and warrants to purchase the same number of shares at a combined price of $4.035 per share and warrant. The warrants, exercisable at $3.91 per share, will become active immediately upon issuance and remain valid for five years.

The offering, led by H.C. Wainwright & Co. as the exclusive placement agent, is expected to close around January 8, pending customary conditions.

Proceeds will support corporate purposes, including clinical development, preclinical research, working capital and capital expenditures.

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Should I Sell My CTXR Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Citius Pharmaceuticals ( CTXR ) stock currently has an RSI of 86.04, indicating overbought conditions.

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CTXR has a 52-week high of $26.75 and a 52-week low of $2.44.