Shares of Tonix Pharmaceuticals Holding Corp. plummeted 21% in active preamrket trade Thursday, after the drug company announced a public stock offering that prices at a deep discount. Tonix said its public offering of 5 million shares priced at $2 a share, which was 19% below Wednesday's closing price of $2.46. With 18.9 million shares outstanding through Wednesday, according to FactSet, the new offering increases the shares outstanding by 26%. Tonix said it plans to use the proceeds from the offering to support the development of TNX-102 SL for the treatment of fibromyalgia, and to further develop TNX-102 for treating post-traumatic stress disorder. The stock had tumbled 68% year to date through Wednesday, while the S&P 500 had gained 1.4%.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.