TransCode Therapeutics (NASDAQ:RNAZ) Sees Heavy Selling pressure: Where is The Bottom?
TransCode Therapeutics (NASDAQ:RNAZ) dropped 29% after the upcoming RNA oncology company priced its initial public offering (IPO) of 6.25 million common shares at $4 per share. The company expects gross proceeds of around $25 million before accounting for offering expenses and underwriting commissions and discounts.
Also, the company has given underwriters 45 days to acquire another 937,500 common shares to cover any over-allotment at the IPO prices minus the underwritten discount. The company is offering all the common shares.
TransCode will use net proceeds from the IPO for testing necessary for IND filing for the phase 0 study of TTX-MC 138, for further TTX-MC138 advancement, and strategic expansion of the company’s drug candidate portfolio. The remaining amount will go into general corporate purposes and working capital. The shares will start trading in the Nasdaq exchange on July 9, 2021, under the ticker symbol “RNAZ.” The company expects to close the offering on July 13, subject to meeting standard closing conditions. So in the coming months, RNAZ will be a stock to watch.
Market Reaction:
On Tuesday, RNAZ stock slumped over 29.30% at $4.56 with more than 14.30 million shares, compared to its average volume of 7.56 million shares. The stock had moved within a range of $4.4000 – 6.4000 after opening the trade at $5.95. Over the past 52-week, the stock has been trading within a range of $4.0000 – 7.0000.
