CHATHAM, N.J. - Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP), a biopharmaceutical company, disclosed its agreement for a public offering of approximately 7.1 million shares at $0.57 each. The offering, expected to close on June 28, 2024, is projected to raise $4 million before fees and expenses.
The proceeds are earmarked for general corporate purposes, including working capital, advancing the new drug application for Tonmya™, a fibromyalgia treatment candidate, and repaying debt. Dawson James Securities, Inc. serves as the sole placement agent.
This offering follows Tonix's efforts to submit a New Drug Application (NDA) to the FDA for Tonmya™ in the second half of 2024. Tonix also focuses on central nervous system disorders and has a portfolio that includes treatments for acute stress reaction and Long COVID with fibromyalgia-like symptoms.
Tonix holds a Breakthrough Therapy designation for TNX-1300, aimed at treating cocaine intoxication. Its immunology portfolio comprises biologics for organ transplant rejection, autoimmune diseases, and cancer, like TNX-1500 targeting CD40-ligand.
The company markets Zembrace® SymTouch® and Tosymra®, both for acute migraine treatment in adults. Tonix's development candidates are investigational and have not received approval for any indication.
The offering is made pursuant to an effective shelf registration statement on Form S-3 filed with the SEC. The prospectus supplement and accompanying prospectus are available on the SEC's website.
Investors should consider the prospectus and the company's filings with the SEC, which provide more information about Tonix and this offering. This press release, based on a press release statement, contains forward-looking statements subject to risks, including the need for FDA approvals and competition.
In other recent news, Tonix Pharmaceuticals Holding Corp. has announced several significant developments. The company plans to offer and sell shares of its common stock, with the proceeds intended for working capital and corporate purposes, including advancing its drug candidate Tonmya™ for fibromyalgia toward a new drug application. The offering details will be filed with the SEC and Dawson James Securities, Inc. is the sole placement agent for this transaction.
In addition, Tonix has regained compliance with Nasdaq's minimum bid price requirement, ensuring its continued listing on the Nasdaq Capital Market. The company has also announced a $4 million public offering of its common stock, intending to use the proceeds for working capital and general corporate purposes, including funding preparations for a new drug application for Tonmya™.
Furthermore, Tonix is preparing to submit a New Drug Application for Tonmya, following two successful Phase 3 trials. The FDA has also granted Rare Pediatric Disease Designation to Tonix's drug candidate TNX-2900 for the treatment of Prader-Willi syndrome in children and adolescents. However, Noble Capital recently revised its price target for Tonix's shares, lowering it to $1.50 from the previous $10.00, while maintaining an Outperform rating on the stock. These are recent developments from Tonix Pharmaceuticals.
InvestingPro Insights
In the wake of Tonix Pharmaceuticals Holding Corp.'s (NASDAQ: TNXP) recent announcement of a public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Tonix has a modest market capitalization of $5.23 million USD, reflecting the size and scale of the company within the biopharmaceutical industry. Despite the challenges, two analysts have revised their earnings estimates upwards for the upcoming period, indicating a potential shift in the company's financial outlook.
The data also reveals that Tonix is trading at a low Price / Book multiple of 0.04 as of the last twelve months leading up to Q1 2024. This could suggest that the company's stock is undervalued relative to its book value, which may be of interest to value investors. Additionally, the Price / Book ratio aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week low, which could represent an entry point for investors believing in the company's long-term prospects.
However, it's important to note that the company has been quickly burning through cash, with an operating income margin of -1032.48% for the same period. This high cash burn rate could raise concerns about the sustainability of its operations without additional funding or a strategic shift. Moreover, the stock has experienced significant price volatility, with a 1-week total return of -16.67% and a 1-year total return of -97.51%, underscoring the risks associated with investing in the company.
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