Tonix Pharmaceuticals Holding Corp ( TNXP ) shares are trading lower by 33.9% to $0.22 Thursday afternoon after the company announced the pricing of a $4.4 million registered direct offering.
Tonix has initiated a securities purchase agreement with existing healthcare-focused institutional investors for the sale of 14,666,666 shares of its common stock and accompanying warrants in a registered direct offering at a combined price of $0.30 per share.
The offering, expected to close around April 1, 2024, is anticipated to generate gross proceeds of approximately $4.4 million. The net proceeds will be allocated towards working capital, general corporate purposes, and partial repayment of debt. A.G.P./Alliance Global Partners is the sole placement agent for the offering.
In addition to the offering, the company has agreed to amend certain existing warrants issued in 2023, reducing their exercise price to $0.33 per share and extending their termination dates.
These amendments are contingent upon shareholder approval, and if not obtained within six months of the offering’s closing, the warrants will have an exercise price equal to the Nasdaq minimum price.
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By now you're likely curious about how to participate in the market for Tonix Pharmaceuticals ( TNXP ) – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Tonix Pharmaceuticals ( TNXP ), which is trading at $0.26 as of publishing time, $100 would buy you 384.62 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, TNXP has a 52-week high of and a 52-week low of
