On December 16, Abeona Therapeutics Inc. (ABEO) stock plunged by a further 22.15% in the after-hours on news of a public offering. The stock was already in the red but the news caused it to fall further deep.
During regular trading, the stock was down by 6.39% at the closing price of $0.4881 on Thursday. Following the news, the stock fell down to $0.3800 in the after-hours at 2.77 million shares.
Currently, the 101.92 million outstanding shares of the biopharma trade at a market capitalization of $53.14 million.
ABEO’s Public Offering
On Thursday, the company announced a public offering of its common stock and warrants. As per the underwritten offering, the company will sell shares of its common stock along with the warrant for its purchase. Moreover, the offer will be made pursuant to an existing shelf registration statement.
Further, the size, terms, and closing which are subject to market condition, were not disclosed. In addition, the sole book-running manager for the offering is Cantor Fitzgerald and Co. And the lead manager for the offering is A.G.P/Alliance Global Partners.
The net proceeds of the offering are intended for the continued funding of pipeline products as well as corporate purposes.
Support of EB Research Partnership
Previously the company sponsored the second annual Venture Into Cures, which was held virtually on November 18. It is a virtual event that supports the mission of the EB Research Partnership. Moreover, EB Research Partnership has been trying to find a cure for EB (epidermolysis bullosa) which is a connective tissue disorder with severe skin wounds.
ABEO is currently working on EB-101 as a treatment for patients with the most severe form of EB. Furthermore, in collaboration with Stanford University Medical Center and UMass Memorial Medical Center, Phase 3 VITALTM study is being advanced.
ABEO’s Financial Analysis
On November 15, ABEO announced its financial results for the third quarter of 2021. In the third quarter of 2021, the company had no revenues while a year ago it had $7.0 million. The previous year’s revenue was generated from sublicense and inventory purchase agreements of ABO-202.
Moreover, in the third quarter of 2021, the R&D and G&A expenses were $8.0 million and $6.1 million, respectively. This compares to $8.0 million and $4.4 million in the year-ago period.
Further, the third quarter saw a net loss of $7.0 million, against $7.2 million in the Q3 of 2020. Consequently, the net loss per basic and diluted share was $0.07 and $0.08 in the Q3 of 2021 and 2020, respectively.
