Shares of PainReform experienced a significant pullback following yesterday's surge, triggered by the company's announcement of a direct offering and concurrent private placement aimed at raising approximately $2.7 million.
The stock opened with a sharp decline of 39%, starting the day at $10.01. Surprisingly, after closing Monday's market at $4.05, the shares soared to an impressive high of $26.41 during midday trading on Tuesday, with no apparent explanation for the sudden increase. When the market closed, the stock settled at $16.50, marking a remarkable fourfold increase from the previous day's closing price.
However, these gains began to unravel during after-hours trading and took a further tumble following PainReform's announcement of a registered direct offering. The clinical-stage specialty pharmaceutical company plans to offer 301,230 shares at a purchase price of $9 per share. Additionally, they will issue warrants to buy the same quantity of shares for $9 each in a private placement.
This offering is slated to conclude on July 14th, and the gross proceeds from both stock sales, amounting to approximately $2.7 million, will be allocated towards various purposes, including funding research and development, conducting clinical trials, and supporting general corporate needs.