In a move to bolster its efforts in the development of treatments for neurological disorders, biopharmaceutical company PaxMedica Inc made a significant announcement today regarding the pricing of its public offering. The company disclosed that it is offering an aggregate of 5,384,615 shares of its common stock, coupled with warrants to purchase an equivalent number of shares of common stock. This offering comes at a combined public offering price of $1.30 per share, along with the accompanying warrant.
However, the market response to this development has not been favorable, as the stock witnessed a notable decline on Monday. Closing Friday’s trading session at $1.75, the stock opened on Monday at $1.12 and continued its downward trend, currently trading at $1.06.
At the time of this publication, PaxMedica Inc stock (PXMD) has witnessed a decline.
PaxMedica Inc
Current Price: $1.06
Change : -0.96
Change (%): (-47.52%)
Volume: 3.0M
Source: Tomorrow Events Market Data
The warrants accompanying the shares will carry an exercise price of $1.30 per share, allowing immediate exercisability upon issuance and an expiration period of five years after the initial exercise date. The closing of the offering is anticipated to take place around November 22, 2023, contingent upon the fulfillment of customary closing conditions.
H.C. Wainwright & Co. is spearheading the offering as the exclusive placement agent.
The gross proceeds to PaxMedica Inc from this public offering, before accounting for the placement agent’s fees and other associated expenses, are projected to reach approximately $7.0 million. The company has outlined its intention to utilize the net proceeds to fully repay the outstanding approximately $0.2 million under the convertible promissory note held by Lind Global Fund II LP. Additionally, the funds will contribute to advancing the company’s ongoing development programs and support general corporate purposes.
It is noteworthy that the securities involved in this offering are being presented under a registration statement on Form S-1 (File No. 333-275416), which received approval from the Securities and Exchange Commission (SEC) on November 20, 2023.
Investors and industry analysts will keenly watch how PaxMedica Inc navigates the aftermath of this public offering announcement and the ensuing fluctuations in its stock value. The market will likely continue to assess the company’s strategic decisions and their impact on its trajectory in the biopharmaceutical sector.
