Shares of Atossa Genetics Inc (NASDAQ:ATOS) tumbled 43% in morning trade Thursday, after the healthcare company’s stock offering priced at a deep discount. The company said its follow-on offering of 11.50 million shares priced at $0.44, which is 48% below Thursday’s closing price of $0.85. Obviously, the public offering would dilute shareholders’ investments as well.
Atossa said that the proceeds from the offering expected to be approximately $5.1 million. Atossa intends to use the proceeds for general corporate purposes. The Company has granted the underwriter an over-allotment option to purchase up to 1,000,000 additional shares of its common stock. The offering is expected to close on or about October 30, 2017, subject to satisfaction of customary closing conditions.
Yesterday, the company reported preliminary results from its Phase 1 study of its proprietary oral Endoxifen for the treatment of breast cancer patients who are refractory to tamoxifien. All objectives were successfully met:
– Safety: There were no clinically significant safety signals and no clinically significant adverse events in participants receiving oral Endoxifen.
– Tolerability: Oral Endoxifen was well tolerated at each dose level and for the dosing duration utilized in the study.
– Pharmacokinetics: Oral Endoxifen demonstrated blood levels that have been associated with a therapeutic effect in the adjuvant setting in women with breast cancer.
These data demonstrate the suitability of oral Endoxifen for further clinical development.