Shares of Annovis Bio experienced a 17% drop in value, currently trading at $6.74, following the announcement of an upcoming underwritten public offering. This offering consists of 1.25 million units, each including one share and an accompanying warrant.
Earlier in the session, the stock had reached its 52-week low at $6.60, bringing its total decline to 47% over the past year.
The offering price to the public for each share and accompanying warrant is $6.
Annovis will be the sole provider of all shares and accompanying warrants, which will be issued separately; however, they can only be purchased together as part of this offering.
With a projected closing date of Thursday, this offering is expected to generate total proceeds of $7.5 million for Annovis.
The company plans to allocate the proceeds from this offering, in combination with their existing cash reserves, toward various purposes. These include covering expenses related to general corporate needs, funding the clinical development of their lead drug candidate, buntanetap, as well as supporting ongoing and planned clinical trials. Additionally, the funds will be used for potential future commercialization efforts, future regulatory activities such as preparing regulatory filings, and early-stage research and development initiatives.