Shares of biopharmaceutical company Annovis Bio (NYSE:ANVS) saw a significant decrease on Tuesday, with a 17% drop to $6.74. This fall came in the wake of the company pricing an offering of 1.25 million units at $6 each, leading to the stock hitting a yearly low of $6.60. This represents a 47% annual decrease in the company's share price.
In this offering, each unit offered by Annovis and issued separately comprises a share and a warrant that must be purchased together. The conclusion of the offering is expected on Thursday, with anticipated proceeds reaching $7.5 million.
The funds raised from this offering will be channeled toward various corporate costs. A significant portion of these funds will be directed towards the clinical development of buntanetap through ongoing and planned trials. Other areas of allocation include potential future commercialization efforts, preparation of regulatory filings, early stage R&D activities, and other general corporate needs.
This move by Annovis Bio reflects its efforts to raise capital for its operations and development activities amidst a challenging market environment for its shares.
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