- The stock price of China SXT Pharmaceuticals Inc (NASDAQ: SXTC) fell by over 45% pre-market today. This is why it happened.
The stock price of China SXT Pharmaceuticals Inc (NASDAQ: SXTC) – a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces (TCMPs), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements (TCMHS) – fell by over 45% pre-market today. Investors are responding negatively to China SXT Pharmaceuticals announcing that it intends to offer in an underwritten public offering its ordinary shares and prefunded warrants to purchase ordinary shares.
These pre-funded warrants shall be offered at the same price per share as the ordinary shares, less the $0.0001 per share exercise price of each pre-funded warrant. And the company plans to use the net proceeds from this offering for general corporate purposes, including, but not limited to, working capital and other business opportunities.
This offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. And the base offering is expected to be up to approximately $3.4 million, and the underwriter will receive an overallotment option to purchase an additional 15% of the number of ordinary shares and/or pre-funded warrants sold for 45 days following the closing.
Aegis Capital is acting as the sole book-running manager for the offering.
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