AllenaPharmaceuticals Inc. (NASDAQ:ALNA) Stock Drops Sharply: Should You Panic?
AllenaPharmaceuticals Inc. (NASDAQ:ALNA) dropped 35% after announcing a registered direct offering of around 21.3 million shares of its common stock plus a warrant to buy around 10.7 million shares at a price per share of $1.311.
The offering is likely to close on July 16, and the company expects gross proceeds of $28 million. The warrants have a five-year expiry, and they are exercisable immediately at $1.25 per share. The company is planning to use direct offering’s net proceeds for general corporate purposes and working capital.
Allena is offering the foregoing securities according to the “shelf” Registration Statement on Form S-3 (No. 333-2228656) previously filed with the SEC on December 3, 2018, which the SEC declared effective on December 26, 2018. Early in the week, the company offered updates on reloxaliase (ALLNN-177) and ALLN-346 clinical programs. The company preponed reloxaliase interim analysis from Q2/Q3 2022 to Q1 2022. Allena is o track to offer preliminary Phase 2a ALLN0346 results at the end of the year. So, in the coming month, ALNA is a stock to watch.
Market Reaction:
On Wednesday, ALNA stock slumped over 25% at $0.9030 with more than 44.45 million shares, compared to its average volume of 614k shares. The stock had moved within a range of $0.8780 – 1.0400 after opening the trade at $0.99. Over the past 52-week, the stock has been trading within a range of $0.8780 – 2.7800.
