Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) announced that it intends to offer and sell, subject to market and other conditions, shares of its common stock and warrants to purchase common stock in an underwritten public offering. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
Tonix expects to use the net proceeds of the offering to support the continued development of TNX-102 SL (cyclobenzaprine HCl sublingual tablets) for the treatment of posttraumatic stress disorder (PTSD), including completion of the first interim analysis in the phase 3 study in military-related PTSD, to further develop other pipeline programs, for working capital and other general corporate purposes, and possibly acquisitions of other companies, products or technologies, though no such acquisitions are currently contemplated. (Original Source)
The public offering would dilute shareholders’ investments, and as such Tonix shares are currently dropping nearly 10% to $0.56 in pre-market trading. TNXP has a 1-year high of $7.95 and a 1-year low of $0.60. The stock’s 50-day moving average is $0.71 and its 200-day moving average is $1.96.
On the ratings front, TNXP has been the subject of a number of recent research reports. In a report issued on September 7, Oppenheimer analyst Jay Olson downgraded TNXP to Hold. Separately, on the same day, Cantor Fitzgerald’s Chiara Russo downgraded the stock to Hold and has a price target of $1.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jay Olson and Chiara Russo have a total average return of 27.1% and 0.6% respectively. Olson has a success rate of 50% and is ranked #966 out of 4197 analysts, while Russo has a success rate of 49% and is ranked #1957.
Tonix Pharmaceuticals Holding Corp. is a clinical-stage pharmaceutical company. It is engaged in developing and manufacturing new pharmaceutical products that are used in central nervous system drugs in large and growing markets. It products include TNX-102 SL and TNX-201.