Avenue Therapeutics, Inc. (ATXI) stock plunged 12.88% in the after-market trading session at the price of $1.15 after it reported the pricing of an underwritten public offering of its common stock.
Avenue Therapeutics, headquartered in New York City, is a specialty pharmaceutical firm. The company develops IV tramadol for patients dealing from acute pain. The drug is a potential substitute that could lower the use of traditional opioids.
ATXI Announced Pricing of Public Offering of Common Stock
On 12th December 2021, ATXI published the pricing of an underwritten public offering of its common stocks. The company offers 1,910,100 shares of its common stock at a public price of $1.07 per share. ATXI expects gross proceeds of roughly $2.0 million from its public offering of common stock shares. The company plans to utilize the net proceeds from the public offering for its general corporate purposes.
Additionally, ATXI granted an underwriter a 45-day option to buy additional shares of common stock, which would raise the total gross proceeds to roughly $2.3 million. The offering will close on 15th December 2021 and is subject to customary closing conditions. The company offered the securities under a registration statement on Form S-3 (No. 333-261520), which was previously filed with the Securities and Exchange Commission (SEC) and became effective on 10th December 2021.
FDA Advisory Meeting to Review IV Tramadol NDA
On 29th November 2021, ATXI reported that the FDA had scheduled the joint meeting of the Drug Safety and Risk Management Advisory Committee and the Analgesic Drug Products Advisory Committee on 15th February 2022. The councils will discuss and review the IV tramadol New Drug Application (NDA). The insights from an Advisory Committee meeting are required to decide on ATXI’s dispute resolution request. The Office of New Drugs (OND) will respond to the company’s request within 30 days after the meeting.
Closing of Underwriter’s Over-Allotment Option
Previously on 17th November 2021, ATXI reported that the underwriter of its earlier announced public offering had exercised its choice to buy an additional 292,018 shares of common stock for $1.34 per share. Total gross proceeds from the offering are roughly $3 million, excluding underwriting discounts and other offering expenses.