On February 24, Baudax Bio Inc. (BXRX) announced the pricing of a $10.0 million public offering. Following this, the stock plunged deep in the premarket on Friday.
During the regular session, the stock enjoyed a profit of 12.89% as it added $0.50. At an above-average volume of 306.34K shares, BXRX stock closed the session at $4.38. While the stock did make some good gains, it reported its new 52-week low of $3.6030 during the regular session. Following the public offering, BXRX stock plunged deep in the premarket to reach a value of $2.00 per share. At the time of writing, the stock had subtracted a huge 54.33% in the premarket on Friday. Thus, BXRX had gone down by $2.38, at the last check, in the premarket.
The pharmaceutical company, Baudax Bio Inc. has a market capitalization of $9.38 million. Currently, the company has 2.42 million shares outstanding in the market. BXRX stock went down by a humungous 90.73% last year and has lost 42.91% year to date.
BXRX’s Public Offering
On Thursday, the company announced the pricing of its underwritten public offering of 3,508,772 common stock shares and warrants. The combined public offering price of a common stock share together with a warrant for buying a common stock share is $2.85 per share. Moreover, the exercise price of the warrants is $3.25 per share and has five-year expiry following the issuance date. The expected gross proceeds from the offering are $10.0 million, less commission, and discounts.
Additionally, BXRX has also granted an option for buying additional 526,315 common stock shares and/or warrants for the same.
The company intends to use the net proceeds from the offering for general corporate purposes along with pipeline development including ANJESO commercialization.
Reverse Stock Split
On February 15, the company announced the approval of a 1-for-35 reverse stock split of common shares by its board. The stock split became effective at 12:01 am EST on February 16, 2022. This reverse stock split was also approved by the shareholders on February 09, 2022, during a special meeting.
Furthermore, the purpose of the stock split was to bring the company into compliance with Nasdaq’s minimum bid price by increasing the per-share price.
BXRX’s Financials
In Q3 2021, the company had net product revenue of $0.3 million against $0.1 million in the year-ago quarter.
BXRX had a net loss of $17.0 million or $0.20/diluted share in the third quarter of 2021.
The company ended the quarter with cash, cash equivalents, and short-term investments of $24.9 million.
