Stock Update (NASDAQ:RXII): RXi Pharmaceuticals Corp Announces $10 Million Public Offering of Common Stock and Warrants


RXi Pharmaceuticals Corp (NASDAQ:RXII), a biotechnology company focused on discovering and developing innovative therapeutics, primarily in the areas of dermatology and ophthalmology, announced the pricing of a public offering of 26 million units at a price to the public of $0.40 per share for gross proceeds of approximately $10.4 million. Each unit consists of (i) one share of common stock, (ii) a 13-month overallotment purchase right to purchase 0.50 of a share of common stock at a price of $0.455 per share and (iii) a five-year warrant to purchase 0.50 of a share of common stock at a price of $0.52 per share. The shares of common stock, overallotment purchase rights and warrants are immediately separable and will be issued separately. Net proceeds, after estimated placement agent fees and other estimated offering expenses, and assuming the overallotment purchase rights and warrants are not exercised, will be approximately $9.3 million. The offering is expected to close on or about June 2, 2015, subject to satisfaction of customary closing conditions.

H.C. Wainwright & Co., LLC is acting as the Company’s exclusive placement agent on a best efforts basis with respect to the offering.

The securities described above are being offering by RXi Pharmaceuticals pursuant to a registration statement on Form S-1, together with a prospectus, and pursuant to a registration statement on Form S-1MEF both previously filed and currently effective. A preliminary prospectus related to the offering was filed with the SEC on May 27, 2015 and a final prospectus related to the offering will be filed with the SEC on or about June 1, 2015. (Original Source)

Shares of RXi Pharmaceuticals closed yesterday at $0.455 . RXII has a 1-year high of $3.98 and a 1-year low of $0.45. The stock’s 50-day moving average is $0.63 and its 200-day moving average is $1.21.

On the ratings front, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on RXII, with a price target of $5, in a report issued on March 31. The current price target represents a potential upside of 987.0% from where the stock is currently trading.

According to TipRanks.com, Benjamin has a total average return of -0.3%, a 37.8% success rate, and is ranked #2821 out of 3610 analysts.

RXi Pharmaceuticals Corpis a biotechnology company focused on discovering and developingtherapies addressing high unmet medical needs, in the areas of dermatology and ophthalmology.