Why Avenue Therapeutics Shares Are Getting Hammered

Avenue Therapeutics Inc ATXI shares are trading lower by 31% to $0.24 Friday morning after the company announced it has entered into warrant exercise agreements with existing accredited investors.

This involves the immediate exercise of certain outstanding warrants, totaling 16.5 million shares of the company's common stock.

What Else?

The warrants include November 2023 Series B warrants and January 2023 warrants, with an aggregate exercise price of $0.3006 per share. The expected gross proceeds for Avenue from the warrant exercise are approximately $5 million, subject to deduction of fees and expenses.

The closing of the transactions is anticipated around January 9, pending customary closing conditions. Maxim Group LLC is serving as the exclusive financial advisor and warrant solicitation agent for the transaction.

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According to data from Benzinga Pro, ATXI has a 52-week high of $2.35 and a 52-week low of $0.13.