Shares of the Baudax Bio, Inc. (BXRX) stock were declining in the current market today on December 28, 2021. BXRX stock price saw a downtrend of 23.93% to drop at $0.24 a share at the time of this writing. The stock was also gloomy in the previous trade and went down by 0.02% at closing. Let’s deep dive to know the reason behind this decline.

What’s Happening?

BXRX stock further declined today after the announcement of a $4.2 million registered direct offering by Baudax Bio. The company announced that it has signed the definitive agreement with certain institutional investors for the issuance and offering of 42,289.3 shares of convertible preferred BXRX stock. Moreover, the company will issue warrants to buy up to an aggregate of 12,686,790 shares of BXRX common stock.

The company expects the gross proceeds of $4.2 million under this offering. The stated value is $100 per share for the shares of preferred stock. These shares will be converted to an aggregate of 16,915,720 shares of common stock after the closing date at a $0.25 per share conversion price. The exercise price for warrants is $0.32 per share and can be exercisable six months following the issuance date. The warrants will become expire after the five years of the initial exercise date. The offering will be closed on or about December 28, 2021, after meeting the customary closing conditions.

Financial View of BXRX stock

• In the third quarter of 2021, BXRX generated $0.3 million in net product revenue as compared to $0.1 million in the same tenure of the previous year.
• Cost of sales of the Baudax Bio was $0.5 million in the third quarter of 2021. Cost of sales remained unchanged as compared to the same quarter of last year.
• The company spent $0.7 million in research and development expenses in the third quarter of 2021. These expenses were $1.5 million in the same period of the previous year.
• Selling, general and administrative expenses of the company were $11.1 million in the recently reported quarter. These expenses were $13.8 million in the same tenure of the previous year.
• Net loss of the BXRX stock was $(0.20) per diluted share or $17.0 million in the three months ended September 30, 2021.
• The company ended the quarter with $24.9 million in cash, cash equivalents, and short-term investments.

Wrap Up

The announcement of public registered direct offering is the obvious reason for the decline in the per-share price of the BXRX stock. The year-to-date loss for this stock is 76.30%.