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Tonix Is Fully Funded

|Includes:Tonix Pharmaceuticals Holding Corp. (TNXP)

So why did they file the S-3? Now seems as good a time as any to prepare for plan B. CEO Seth Lederman has said that the final trial will cost about $24 million to run and their first preference is to partner after the current trial is finished in October (with the partner funding the final trial). Plan B is to go it alone and go to the capital markets to fund the last trial. They've repeatedly said that is not their first choice, and they have the money to complete the current 2b trial, but the prudent thing is to prepare for both contingencies (bold is Tonix emphasis not mine):

"We may offer and sell, from time to time in one or more offerings, any combination of common stock, preferred stock, warrants, or units having an aggregate initial offering price not exceeding $50,000,000. The preferred stock, warrants, and units may be convertible or exercisable or exchangeable for common stock or preferred stock or other securities of ours.

Each time we sell a particular class or series of securities, we will provide specific terms of the securities offered in a supplement to this prospectus. The prospectus supplement may also add, update or change information in this prospectus. You should read this prospectus and any prospectus supplement, as well as the documents incorporated by reference or deemed to be incorporated by reference into this prospectus, carefully before you invest in any securities. This prospectus may not be used to offer or sell our securities unless accompanied by a prospectus supplement relating to the offered securities."

But Tonix is fully funded and said as much twice in the third quarter 10-Q filed two weeks ago, which is consistent with what they've been saying since they raised more than $10 million in August (bold is my emphasis):

"The Company's primary efforts are devoted to conducting research and development for the treatment of CNS diseases. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. The Company does not have any commercial products available for sale and there is no assurance that if approval of its products is received that the Company will be able to generate cash flow to fund operations. In addition, there can be no assurance that the Company's research and development will be successfully completed or that any product will be approved or commercially viable. Management believes that the Company has sufficient funds to meet its research and development and other funding requirements through at least September 30, 2014...Our future capital requirements will depend on a number of factors, including the progress of our research and development of product candidates, the timing and outcome of regulatory approvals, the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims and other intellectual property rights, the status of competitive products, the availability of financing and our success in developing markets for our product candidates. We believe our existing cash is sufficient to fund our operating expenses and capital equipment requirements for at least the next 12 months. "

So I think we have some responsible prudence by management with the S-3 filing. They don't need funding at this time, after phase 2b results they can partner or use this S-3 filing to fund the final trial.

Disclosure: I am long TNXP.

Stocks: TNXP