Unicycive Therapeutics Inc. (NASDAQ:UNCY) Stock Sees Selling Pressure: Should You Buy?

Unicycive Therapeutics Inc. (NASDAQ:UNCY) dropped 16%, and the stock has lost 54% since its IPO last week, priced at $5 per share. Shares opened at $8.55 per share a day after its IPO, but they later started shedding. The  5 million units IPO offer comprised an underwriters’ overallotment of 750,000 shares/warrants.

Each unit comprises a common share and four-fifth of a warrant to acquire a common share. In addition, Unicycive offers all units and underwriters a 45-day option to buy more shares of common share and warrants to buy an additional 600,000 common stock shares at IPO price minus underwriting commissions and discounts.

The company generated gross proceeds of $25 million to be used from multiple business activities that include pre-clinical trials from an NDA for Renazorb, its investigational hyperphosphatemia therapy in chronic kidney disease patients. In connection with the IPO, the company’s common stock has been approved for listing in the Nasdaq Capital Market exchange. So in the coming weeks, UNCY is a stock to watch.

Market Reaction:

On Monday, UNCY stock plunged 15.62% at $2.70 with more than 1.10 million shares, compared to its average volume of 6.37 million shares. The stock has moved within a range of $2.6000 – 2.9900 after opening the trade at $2.99. Over the past 52-week, the stock has been trading within a range of $2.6000 – 8.7300.