Pulmatrix (NSDQ:PULM) said today that unnamed institutional investors agreed to purchase approximately $3.3 million of shares of common stock in a direct offering. The company said it plans to sell 950,000 shares at $3.50 apiece.
Pulmatrix expects the offering, which will close next week, to bring in $3.0 million in proceeds to use for general corporate purposes and paying off some of its debt.
The company saw its stock price soar in January after its drug candidate for treating fungal infections in the lungs of cystic fibrosis patients was designated as a ‘qualified infectious disease product’ by the FDA. Following the announcement, the Lexington, Mass.-based company’s shares jumped 159% to $1.79 apiece.
With the designation, Pulmatrix will receive 5 years of market exclusivity for the drug candidate.
Its price has only climbed since then, reaching a peak of $6.69 apiece in mid-afternoon activity yesterday.
PULM shares were trading at $4.07 per share in afternoon activity today, down -20%.
In late January, the company landed an agreement with several institutional investors to purchase $5.0 million of shares of common stock in a registered direct offering. Pulmatrix agreed to sell 2 million shares of common stock at $2.50 apiece. The offering closed yesterday.
The company said it anticipates that the offering will bring in $4.5 million in net proceeds, which it plans to use for general corporate purposes and debt payments.
In November, the company reported that it reeled in its losses by -35% to -$3.2 million compared to Q3 last year. Revenue fell -91% compared with the same period last year to $61,000 for the 3 months ended Sept. 30. Losses per share were -21¢.
Pulmatrix cited the conclusion of a clinical study funded by its collaboration with Mylan (NSDQ:MYL) as the cause of its drastic decrease in revenue.
