What's Going On With Biofrontera Stock?

Biofrontera Inc. BFRI shares are trading higher Tuesday after the company announced it has secured financing of $8 million with an additional $8 million second tranche tied to milestones for aggregate proceeds of $16 million.

The Details:

Biofrontera announced it has entered into a securities purchase agreement with healthcare-focused institutional investors led by Rosalind Advisors. Pursuant to the securities purchase agreements, the company will issue to the purchasers an aggregate $8 million in shares of the company’s Series B-1 Convertible Preferred Stock and warrants to purchase shares of the company’s Series B-3 Convertible Preferred Stock with an aggregate exercise price of $8 million.

The company also announced the restructuring of agreements between Biofrontera and its former parent company, Biofrontera AG, which reduces the transfer price of Ameluz from 50% to 25% for all purchases in 2024 and 2025.

Biofrontera shares are climbing on heavy trading volume following the announcements Tuesday. According to data from Benzinga Pro, more than 24.2 million shares have been traded in the session, compared to the stock’s 100-day average of less than 242,000 shares.

Related News: Why The Trade Desk Stock Is Up Today

Should I Sell My BFRI Stock:

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Biofrontera have lost 90.98% year to date. This compares to the average annual return of -79.59%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Biofrontera stock currently has an RSI of 42.75, indicating neutral conditions.

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BFRI Price Action: According to Benzinga Pro, Biofrontera shares are up 80% at $1.35 at the time of publication.

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