Tonix Pharmaceuticals Holding Corp (NASDAQ:TNXP) shares traded lower by 7.2% to $0.17 Monday morning, hitting a new-all time low. The stock is trading lower on downward momentum after the company last week announced the pricing of a $4.4 million registered direct offering.
Tonix has initiated a securities purchase agreement with existing healthcare-focused institutional investors for the sale of 14,666,666 shares of its common stock and accompanying warrants in a registered direct offering at a combined price of $0.30 per share.
The offering, expected to close around April 1, is anticipated to generate gross proceeds of approximately $4.4 million. The net proceeds will be allocated towards working capital, general corporate purposes, and partial repayment of debt. A.G.P./Alliance Global Partners is the sole placement agent for the offering.
In addition to the offering, the company has agreed to amend certain existing warrants issued in 2023, reducing their exercise price to $0.33 per share and extending their termination dates.
These amendments are contingent upon shareholder approval, and if not obtained within six months of the offering's closing, the warrants will have an exercise price equal to the Nasdaq minimum price.
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Should I Sell My TNXP Stock?
When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.
Shares of Tonix Pharmaceuticals have decreased by 94.6% in the past year. An investor who bought shares of Tonix Pharmaceuticals at the beginning of the year would take a loss of $0.22 per share if they sold it today. The stock has fallen 48.56% over the past month, meaning an investor who bought shares on Mar. 1 would see a capital loss of $0.18.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Tonix Pharmaceuticals stock currently has an RSI of 12.61, indicating oversold conditions.
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TNXP has a 52-week high of $3.80 and a 52-week low of $0.17.