Pulmatrix Inc (NASDAQ:PULM) investors are running for the hills, after the drug maker announced that it has entered into a definitive agreement with several institutional investors to purchase an aggregate of approximately $3.33 million of shares of common stock in a registered direct offering.
The Company agreed to sell an aggregate of approximately 950,000 shares of common stock, at a price of $3.50 per share, a 31% discount to yesterday’s closing price, in the registered direct offering. The closing of this offering is expected to take place on or about February 8, 2017, subject to the satisfaction of customary closing conditions.
Reacting to the news, Pulmatrix shares are tumbling nearly 27% to $3.67 in late trading Friday. PULM has a 1-year high of $6.98 and a 1-year low of $0.50. The stock’s 50-day moving average is $1.21 and its 200-day moving average is $1.39.
Pulmatrix, Inc. is a clinical stage biotechnology company, which is focused on the discovery and development of novel inhaled therapeutic products intended to prevent and treat respiratory diseases and infections with significant unmet medical needs. It designs and develops inhaled therapeutic products based on its proprietary dry powder delivery technology, iSPERSE, which enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. The company was founded by David Edwards, Mark Gabrielson, Alexander Klibanov, and Robert Langer in 2013 and is headquartered in Lexington, MA.