Why Is Salarius Pharmaceuticals Stock (SLRX) Up 65% Today?
Salarius Pharmaceuticals (SLRX) stock surged 66.33% on Wednesday after a significant drop the previous day due to an underwritten public offering of over 2.5 million shares at $1.50 each, raising approximately $7 million. The stock typically rebounds post-offering, and the offering was set to close today. The proceeds will fund clinical development and pay off Decoy's promissory notes. Despite the rally, SLRX is down 96.45% year-to-date and 95.37% over the past year, with heavy trading volume exceeding 27 million shares today.
Salarius Pharmaceuticals (SLRX) stock rocketed higher on Wednesday following a massive fall yesterday. The drop the stock experienced on Tuesday was related to its underwritten public offering, which included 2,514,335 shares and pre-funded warrants to purchase another 2,152,331 shares. These were sold for $1.50 per share, resulting in gross proceeds of approximately $7 million.
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While it's common for a public stock offering to reduce the value of a company's shares, due to the side effect of a discounted price in the offering and the dilution of shareholder stakes, the stock often recovers when the offering is complete. Investors will note that the Salarius Pharmaceuticals stock offering was set to close today, which explains why the stock has rallied.
Salarius Pharmaceuticals also provided investors with details about what it would do with the net proceeds from the stock offering. It intends to spend the money on clinical development of Salarius' and Decoy's research and development programs, pay off certain of Decoy's outstanding promissory notes, and other general corporate purposes.
Salarius Pharmaceuticals Stock Movement Today
Salarius Pharmaceuticals stock was up 66.33% on Wednesday, following a 51% fall yesterday. The stock has decreased 96.45% year-to-date and 95.37% over the past 12 months.
With today's news came heavy trading of SLRX stock, as more than 27 million shares changed hands, compared to a three-month daily average of about 356,000 units. The stock also saw heavy trading yesterday, when roughly 5.87 million shares were exchanged.
