Following the announcement of a $2.0M public offering, Avenue Therapeutics Inc. (ATXI) was down by 15.9% at the last check, in the premarket today. In the previous session, the stock traded in the green, closing the session at $1.32 with a 5.60% increase. At the time of writing, ATXI stock was in the red at $1.11 in the premarket on December 13.

The specialty pharmaceutical company, Avenue Therapeutics Inc. (ATXI) was founded in 2015. Currently, its 18.99 million outstanding shares trade at a market capitalization of $25.07 million.

The Public Offering

On December 12, the company announced an underwritten public offering of its common stock. As per the offerings, 1,910,100 shares of the company’s common stock would be offered to underwriters. Moreover, the per-share price of the common stock as disclosed is to be $1.07 in the offering. Further, the expected gross proceeds from the offering are $2.0 million approx., less discounts, and commissions.

Furthermore, a 45-day option of buying up to 15% additional shares was also granted to the underwriters. Subsequently, the gross proceeds would increase to $2.3 million, if the option is exercised in full.

As per the closing conditions, the expected close date of the offering is December 15, 2021. In addition, the net proceeds of the offering will be used for working capital and general corporate purposes.

Furthermore, the sole book-running manager for the offering is Aegis Capital Corp.

ATXI’s Tramadol’S NDA

On November 29, the company announced the details of its Tramadol’s New Drug Application. As per the details, the FDA informed ATXI about a joint meeting of the Anesthetic and Analgesic Drug Products Advisory Committee and the Drug Safety and Risk Management Advisory Committee. As per the announcement, the joint meeting is supposed to take place on February 15, 2022. Both the committees will discuss the New Drug Application for ATXI’s tramadol.

ATXI’s Previous Developments

On November 17, the company announced the exercise and closing of the underwriter’s over-allotment option. As per the details, the underwriter of the previously announced public offering had fully exercised its option for buying additional 292,018 shares. The price of the additional shares of the common stock was $1.34 per share. Further, the gross proceeds of the option along with the original offering were $3.0 million approx. This amount excludes the underwriter’s discounts and commissions offered.

In addition, the sole book-running manager of the offering was also Aegis Capital Corp.