Aptorum Tumbles to Historic Low on Pricing of $10 Million Offering
The biopharmaceutical company is offering 1.35 million Class A ordinary shares and warrants at $7.40 each.
The stock in Aptorum Group Ltd. (Nasdaq: APM) plunged to a historic low of $6.50 per share on Wednesday after the company announced the pricing of its $10 million direct offering.
The Hong Kong-based biopharmaceutical company said in a statement today that it is offering 1.35 million Class A ordinary shares and warrants at $7.40 each. Approximately $6 million comes from unaffiliated institutional investors and $4 million comes from its largest shareholder, Jurchen Investment Corp. Jurchen is wholly owned by Ian Huen, the chief executive officer and executive director of Aptorum Group.
The underwriters are Alliance Global Partners and Maxim Group LLC.
Aptorum intends to use the proceeds from the offering towards, the research and development of its therapeutic candidates, the expansion of its discovery and development pipeline of the Smart-ACTTM orphan diseases platform, working capital, and general corporate purposes. While Aptroum noted it may use a portion of the proceeds to purchase or invest in technologies, products and/or businesses, the company does not currently have plans to do so.
Down nearly 55% from Tuesday's close, today's $6.50 per share trading price marked the lowest point Aptorum's stock has hit since its IPO in December 2018. Now, Aptorum's stock has tumbled more than 80% since reaching a high $33.28 per share in June. This month, Aptorum has mostly traded in between $14.00 per share and $18.25 per share.
Established in 2010, Aptorum develops and commercializes a variety of therapeutic and diagnostic technologies to treat unmet medical needs. The company focusses on therapeutic projects in orphan diseases, infectious diseases, metabolic diseases, and other disease areas. Earlier this month, Aptorum announced the commercialization its dietary supplement for women undergoing menopause and experiencing related symptoms.
Aptorum expects the offering to close on Friday.