Synaptogenix, Inc.(SNPX) stock prices skyrocketed by a massive 20.80% shortly after market trading commenced on June 17th, 2021, bringing the price per share up to USD$10.75 early on in the trading day.
Meme Stock Phenomenon
SNPX could be the latest in a series of stocks that have been picked up by Reddit-driven retail investors tat are responsible for the recent resurgence of the meme stock phenomenon. Underdogs with high short interests find themselves fortuitously bolstered as the community of investors continues to target companies without a logical basis for their support. In the absence of recent news or any fundamental developments, companies sometimes on the brisk of collapse find themselves renewed by the sweeping meme stock craze.
Securities Purchase Agreement
The up-and-coming biopharmaceutical company recently announced the successful execution of a securities purchase agreement, wherein SNPX hopes to generate gross proceeds in the amount of USD$12.5 million. The private placement financing of common stock and warrants will comprise holistic units, which will be sold off in the placement that will be primarily led by existing institutional shareholders.
Allocation of Funds
Capital generated from the net proceeds of the private placement are forecasted to be allocated towards the supporting of the ongoing development of Brystatin-1. The treatment is currently in Phase 2b of a NIH-sponsored Alzheimer’s disease trial, with further research and development being carried out to facilitate new indications.
Each unit being sold in the offering consists of a single share of SNPX’s common stock combined with one warrant, with a combined purchase price of USD$7.547 per unit. The warrants have an exercise date of five years from when they are issued, and are priced at USD$8.51 per share of common stock. The placement was scheduled to close the same day, on June 16th 2021.
Future Outlook for SNPX
Armed with a solid liquidity position from their recent offering, SNPX is undoubtedly delighted with the skyrocketing of their equity value despite a stark absence of media coverage of significant motivators of that stock movement. The company is keen to continue its trajectory of success to usher in more organic growth. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.