Altimmune (ALT) Shares Slide On $75 Million Stock Offering

Altimmune Inc (NASDAQ:ALT) shares are tumbling on Wednesday following the company’s announcement of a $75 million registered direct offering of common stock.

Here’s what investors need to know.

Altimmune stock is taking a hit today. Why are ALT shares down?

Altimmune Prices Offering to Fund Phase 3 MASH Trial

The company has entered a securities purchase agreement with a new fundamental institutional investor for the purchase and sale of 17,045,454 shares of Altimmune common stock (or pre-funded warrants in lieu thereof).

Altimmune said the transaction is expected to generate approximately $75 million in gross proceeds, before deducting placement agent fees and other offering expenses. The offering was priced at approximately $4.40 per share. The offering is expected to close on or about Jan. 29, subject to customary closing conditions.

Altimmune plans to use net proceeds to fund preparations for its upcoming Phase 3 trial in MASH (metabolic dysfunction-associated steatohepatitis), along with working capital and general corporate purposes.

The company is developing Pemvidutide, a dual glucagon/GLP-1 agonist, for serious liver diseases.

Is ALT Stock Priced For A Correction?

Currently, the stock is trading 17.4% above its 20-day simple moving average (SMA) and 19.8% above its 100-day SMA, indicating some short-term strength despite the recent decline. Over the past 12 months, shares have decreased by approximately 26.33% and are positioned closer to their 52-week lows than highs.

The RSI is at 78.59, signaling that the stock is in overbought territory, while the MACD is above its signal line, indicating bullish momentum. The combination of an overbought RSI and bullish MACD suggests that while the stock has been performing well, it may be due for a correction.

Key Resistance: $6

How Altimmune’s Funding Strategy Is Shaping Growth

Altimmune is a clinical-stage biopharmaceutical company focused on developing treatments for obesity, metabolic diseases, and liver diseases. Its product candidate, pemvidutide (formerly known as ALT-801), is a novel, investigational, peptide-based GLP-1/glucagon dual receptor agonist. Pemvidutide is currently in clinical development for obesity and metabolic-associated steatohepatitis (MASH).

The company’s recent stock offering is significant as it aims to fund further development of pemvidutide, which could be pivotal in addressing major health issues. Given the current market dynamics, investors are closely watching how this funding will impact Altimmune’s growth trajectory.