CHATHAM, N.J. - Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), a biopharmaceutical company, announced today its intention to offer and sell shares of its common stock, or pre-funded warrants as an alternative. This move is contingent on market conditions, and the company has not confirmed the completion schedule or the specifics of the offering.
The proceeds from the sale are intended for general corporate purposes, which include bolstering working capital, advancing the new drug application for Tonmya™, a candidate for treating fibromyalgia, and potentially reducing existing debts. Dawson James Securities, Inc. has been named the sole placement agent for this offering.
The sale of these securities will be conducted in accordance with a previously submitted shelf registration statement to the U.S. Securities and Exchange Commission (SEC). Details on the offering's terms will be available in a prospectus supplement and accompanying prospectus, to be filed with the SEC.
Tonix is focused on developing treatments for central nervous system disorders and other medical conditions. Its portfolio includes Tonmya™, which is set for an NDA submission in the latter half of 2024, and other candidates for conditions such as acute stress reaction and fibromyalgia-type Long COVID. Additionally, Tonix is working on TNX-1300 for cocaine intoxication, which has received Breakthrough Therapy designation, and TNX-1500, targeting organ transplant rejection and autoimmune diseases.
The company also markets Zembrace® SymTouch® and Tosymra®, both treatments for acute migraines in adults. Tonix emphasizes that its drug candidates are still under investigation and have not received approval for any indications.
Investors are advised to thoroughly review the prospectus supplement, the accompanying prospectus, and other related documents filed with the SEC before investing. This announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer would be unlawful.
In other recent news, Tonix Pharmaceuticals has taken significant strides in its operations. The company implemented a 1-for-32 reverse stock split to comply with NASDAQ's minimum bid price rule, consolidating every thirty-two existing shares of common stock into a single share. Tonix is also preparing to submit a New Drug Application for Tonmya, a potential non-opioid treatment for fibromyalgia, following two successful Phase 3 trials.
In financial developments, Tonix secured approximately $4.4 million in a registered direct offering to institutional investors. However, Noble Capital 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.
In addition to these developments, the FDA granted Rare Pediatric Disease Designation to Tonix's drug candidate TNX-2900 for the treatment of Prader-Willi syndrome in children and adolescents. These recent developments highlight Tonix's ongoing efforts to advance its portfolio of treatments for central nervous system disorders and other diseases.
InvestingPro Insights
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) has made headlines with its latest move to offer shares or pre-funded warrants. Investors watching TNXP closely should consider recent data and analysis available on InvestingPro. Here's a snapshot of the company's financial health and market performance:
With a modest market capitalization of $6.4 million, Tonix is trading at a very low Price / Book multiple of 0.06 as of the last twelve months ending Q1 2024. This could indicate that the company's stock is undervalued relative to its assets, which is often a point of interest for value investors. Additionally, the company has generated a gross profit of $3.85 million during the same period, translating to a gross profit margin of approximately 37.55%.
However, the company's financial challenges are also evident. Tonix's operating income margin has been deeply negative, at -1032.48%, indicating that its expenses far exceed its revenue. Moreover, the company's return on assets is -62.71%, reflecting difficulties in generating profit from its assets.
From a trading perspective, two InvestingPro Tips highlight critical aspects of TNXP's recent market activity. The stock has been identified as being in oversold territory according to the Relative Strength Index (RSI), which might appeal to technical traders looking for a potential rebound. Furthermore, the stock has experienced significant volatility, with a one-week price total return of -55.33% and a one-year price total return of -96.23%, underscoring the high-risk nature of this investment.
For those considering an investment in TNXP, it's worth noting that analysts have revised their earnings upward for the upcoming period, suggesting potential optimism about the company's future performance. However, analysts do not expect the company to be profitable this year, which is a crucial factor to consider.
To gain a deeper understanding of TNXP's financials and market performance, investors can access additional insights on InvestingPro. There are 17 more InvestingPro Tips available, which could provide valuable context for the company's current position and future prospects. For those interested in a comprehensive analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/TNXP.
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