TransCode Therapeutics (NASDAQ:RNAZ) stock has seen a wild 24 hours of trading as the Boston headquartered nano-cap drug discovery firm rocketed Monday, before coming back down to earth with an after-hours equity raise.
On the back of preclinical results, the RNA oncology stock traded as high as $3.20 and closed at $2.55, from a starting price of 66 cents.
Then in afterhours, the company announced an $8 million raise – selling 15.7 million shares (or prefunded warrants) at 51 cents each.
In Tuesday's premarket, Transcode is priced at 81 cents per share, down some 59% from yesterday’s close.
Investors in Transcode are likely accustomed to volatility, given the stock began the year trading up to a peak of $18.20 in January prior to the year’s trading low of 53 cents, seen on September 19.
Last night's 51 cent per share placing was arranged by ThinkEquity, a Panmure Gordon subsidiary based in San Franscico and described as a boutique investment bank.
It was underwritten, and the underwriters have been granted a 45-day option to purchase up to 2.33 million additional shares at "the public offering price less the underwriting discount".
Transcode said the share offering is expected to close on September 28.
It intends to use the proceeds to fund one or more clinical trials with its lead therapeutic candidate, TTX-MC138, including related investigational new drug enabling studies.
Funds will also be used for working capital and other general corporate purposes.