Tonix Pharmaceuticals (TNXP) Stock: Why It Increased 3.95%

By Amit Chowdhry ● Jun 22, 2022
  • The stock price of Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP) increased by 3.95% in the most recent trading session. This is why.

The stock price of Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP) increased by 3.95% in the most recent trading session. Investors responded positively to Tonix Pharmaceuticals announcing that it has entered into a securities purchase agreement with certain institutional investors to purchase 2.5 million shares of Series A convertible redeemable preferred stock and 500,000 shares of Series B convertible redeemable preferred stock.

Each share of Series A and Series B preferred stock has a purchase price of $9.50, representing an original issue discount of 5% of the $10 stated value of each share. And each share of Series A and Series B preferred stock is convertible into shares of the company’s common stock at an initial conversion price of $4 per share. The shares of the Series A and Series B preferred stock are convertible at the option of the holder at any time following the company’s receipt of shareholder approval for an increase to the authorized shares of common stock of the company from 50 million to 150 million.

The company is going to be permitted to redeem the Series A preferred stock at its option upon the fulfillment of certain conditions and subject to certain limitations. And the company and the holders of the Series A and Series B preferred stock also entered into a registration rights agreement to register the resale of the shares of common stock issuable upon conversion of the Series A and Series B preferred stock. The total gross proceeds from the offerings, before deducting discounts, placement agent’s fees, and other estimated offering expenses, is $30 million.

The closing of the offering is expected to occur on or about June 24, 2022, subject to the satisfaction of customary closing conditions.

A.G.P./Alliance Global Partners is acting as the sole placement agent in connection with the offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.