CNS Pharmaceuticals, Inc. (NASDAQ:CNSP) experienced significant movement in its share price Wednesday afternoon. Here's a look at what happened.
What Happened: CNS Pharmaceuticals stock soared on abnormally high volume in early trading Wednesday. The move appeared to be retail driven, given that the stock was trending on various social platforms throughout the shortened trading session.
Wednesday's trading volume of about 55.7 million shares easily exceeded the stock's average volume of about 408,000, according to Benzinga Pro.
CNS Pharmaceuticals announced a strategic move to bolster its financial position through an offering of 1.425 million shares of common stock to health-focused institutional investors. The company will also offer warrants to purchase up to 1.425 million shares in a concurrent private placement. The shares were priced at $1.39 each, while the warrants were made exercisable at $1.26 per share and allow for the purchase of shares over the next five years.
The offering is expected to close on or about July 5. CNS Pharmaceuticals said it anticipates gross proceeds from the offering of approximately $1.98 million before deducting expenses.
How To Buy CNSP Stock
By now you're likely curious about how to participate in the market for CNS Pharma – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. In the case of CNS Pharma, which is trading at $1.46 as of publishing time, $100 would buy you 68.49 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
Price Action: CNS Pharmaceuticals closed Wednesday up 15.9% at $1.36, according to Benzinga Pro.
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