Why Phio Pharmaceuticals Stock Is Nosediving
Portfolio Pulse from Henry Khederian
Phio Pharmaceuticals Corp's stock plummeted by 40% after the company announced the exercise of warrants for $2.8 million in gross proceeds at a reduced price of $1.33 per share. The warrants were originally issued at higher prices between 2018 and 2023. The funds raised are before fees and expenses, and the shares are from previously registered offerings under Form S-1 and Form S-3. PHIO's 52-week trading range is between $0.88 and $12.27.
December 07, 2023 | 7:25 pm
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NEGATIVE IMPACT
Phio Pharmaceuticals Corp's stock experienced a significant drop after the announcement of warrant exercises at a reduced price, which may dilute existing shareholders' equity.
The exercise of warrants at a reduced price often leads to dilution of existing shareholders' equity, which can result in a negative market reaction and a decrease in stock price. The substantial drop in PHIO's stock price reflects investor concerns over dilution and the potential impact on the value of their investment.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100