Why Avenue Therapeutics Shares Are Getting Hammered
Portfolio Pulse from Henry Khederian
Avenue Therapeutics Inc (NASDAQ:ATXI) shares dropped 31% to $0.24 after announcing warrant exercise agreements with investors for 16.5 million shares at $0.3006 each, expecting to raise $5 million. The deal is set to close around January 9, with Maxim Group LLC as the financial advisor.

January 05, 2024 | 3:01 pm
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Avenue Therapeutics' stock price fell sharply due to the dilutive effect of the warrant exercise agreement, which could raise around $5 million for the company.
The sharp decline in ATXI's stock price is likely due to the dilutive nature of the warrant exercise, which increases the number of shares outstanding, thereby reducing the value of existing shares. The immediate impact is negative as the market reacts to the potential dilution and the exercise price being above the current trading price.
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