Athenex (ATNX) Stock: Why It Fell Over 30% Today

By Amit Chowdhry ● Aug 11, 2022
  • The stock price of Athenex (ATNX) fell by over 30% pre-market today. This is why.

The stock price of Athenex (ATNX) – a global biopharmaceutical company dedicated to the discovery, development, and commercialization of novel therapies for the treatment of cancer and related conditions – fell by over 30% pre-market today. Investors are responding to Athenex announcing the pricing of its underwritten public offering of 35,333,334 shares of its common stock and accompanying warrants to purchase up to 35,333,334 shares of common stock at a combined public offering price of $0.75 per share and accompanying warrant and, in lieu of common stock to certain investors, pre-funded warrants to purchase up to 4,666,666 shares of its common stock and accompanying warrants to purchase up to 4,666,666 shares of common stock at a combined public offering price of $0.749 per share and accompanying warrant. 

The pre-funded warrants have an exercise price of $0.001 per share, are exercisable immediately, and will expire 5 years following the date of issuance. And the warrants have an exercise price of $1.00 per share, are exercisable immediately, and will expire five years following the date of issuance. 

These gross proceeds to Athenex from the offering, before underwriting discounts and commissions and offering expenses, are expected to be approximately $30 million. This offering is expected to close on August 15, 2022, subject to customary closing conditions.

Athenex plans to use the net proceeds from the proposed offering to fund ongoing clinical development for its product candidates and for working capital and other general corporate purposes.

SVB Securities is acting as the sole book-running manager for the offering.