On February 28, shares of Avenue Therapeutics Inc. (ATXI) continued to rise in the after-hours to add a humungous 73.58%. The stock had already increased by a good 35.96% during the prior regular session. There is no official announcement or SEC filing of the company behind the stock’s upsurge.
In the regular session, ATXI stock fluctuated between a high of $0.3399 and a low of $0.2327. The stock closed the session at $0.3399 while 3.77 million shares exchanged hands. The day’s volume remained a huge 566% of its average 665.5K shares. ATXI’s bullish momentum escalated in the after-hours session as it reached up to $0.5900 per share. The after-hours session also witnessed an active volume of 2.71 million shares.
The specialty pharmaceutical company, Avenue Therapeutics Inc. has a market capitalization of $5.23 million. Currently, the company has 18.99 million shares outstanding.
What is Happening with ATXI?
On February 15, the company announced the outcome of the FDA’s advisory committee meeting regarding IV Tramadol. The committee’s majority votes claimed insufficient adequate information for supporting the benefits of the drug, with only 8 in favor and 14 no votes. While the Office of New drugs will respond to ATXI’s FDRR (formal dispute resolution request) within 20 calendar days after the meeting, the committee’s results were not good. Thus, the stock entered a continued downtrend the following session. Consequently, the stock reached a new low of $0.20 on February 24. After falling down for more than a week, the stock finally started to recover after reaching the new low. While the stock was bound for corrections, the new low provided a good buying opportunity to the investors. Therefore, the stock continued to surge on Monday.
Other than the low in the price of the stock, there seems no official reason for the investors’ change of heart towards the stock.
$2.0M Public Offering
On December 12, the company announced an underwritten public offering of 1,910,100 shares at a price of $1.07 per share to the public. Moreover, the expected gross proceeds from the offering were $2.0 million, less discounts and commissions.
Additionally, ATXI also granted a 45-day option for buying up to a further 15% of the number of shares at the offering price. The over-allotment if exercised in full would increase the gross proceeds to $2.3 million approx.
On December 15, the company announced the closing of the offering with gross proceeds of $2.0 million. The company intended to use the net proceeds for working capital and general corporate purposes.
