Seeking Alpha

Rexahn Pharma slides after announcing offering

  • Shares of Rexahn Pharmaceuticals (RNN) fall 14% premarket on top of Tuesday's 27% decline.
  • The company is set to sell $20M worth of units in a registered direct offering.
  • Each unit consists of one share of common and a five-year warrant to purchase 0.25 of a share.
  • The price per unit is $1.05. (PR)
From other sites
Comments (8)
  • brown25
    , contributor
    Comments (63) | Send Message
     
    "Roth Capital Partners acted as lead placement agent and H.C. Wainwright & Co., LLC acted as co-placement agent in connection with the offering"... Boy does this smell bad!!
    15 Jan 2014, 09:19 AM Reply Like
  • listech
    , contributor
    Comments (19) | Send Message
     
    Amen to that!
    15 Jan 2014, 11:06 AM Reply Like
  • joe kelly
    , contributor
    Comments (1796) | Send Message
     
    Not like it's a surprise. Really like $RNN but it's still a speculative biotech. With a big price run up is always a strong possibility of an offering. I can see a drop even to the .60 level but the word is out and I'm buying if I can get it under $1 today.
    15 Jan 2014, 11:21 AM Reply Like
  • GrowthGeek
    , contributor
    Comments (1461) | Send Message
     
    It stings for now but this is a typical thing for a very small company that needs to raise capital before they have an approved drug on the market. Don't panic anyone--RNN is a great little company with a fantastic pipeline. The stock price will likely settle for a while at 1.05 right at the offering price and then pop up again. This will limit the speed and amount of its rise for the next three months, but I think it's still likely to be above 2.50 by year's end.
    15 Jan 2014, 11:29 AM Reply Like
  • Nataku
    , contributor
    Comments (70) | Send Message
     
    I will be very surprised if it even gets to 1.05 at the end of the day....
    15 Jan 2014, 02:47 PM Reply Like
  • listech
    , contributor
    Comments (19) | Send Message
     
    Agree Joe Kelly. This is a good little company and at these prices is a good speculative offer. I'm buying more today too if the price holds at around $1.00 but there will be plenty of opportunities to buy low and sell when it takes off on good news. I made a lot of $ doing this with GALE in their early days.
    The real payoff is in the future and that will require a real long mentality.
    16 Jan 2014, 10:15 AM Reply Like
  • joe kelly
    , contributor
    Comments (1796) | Send Message
     
    I hear you Listech. I did make decent money swing trading GALE, INO and RNN but I'd be at least twice as well off had I just held them. Maybe more than that but doing the math is too painful.
    16 Jan 2014, 10:26 AM Reply Like
  • listech
    , contributor
    Comments (19) | Send Message
     
    Hey, if I really wanted to look at some of my stupid decisions and bad timing, there are dozens of them, REGN, QCOR and so many more. I don't lose too much sleep over them anymore!
    Best of luck in all your trades!
    21 Jan 2014, 11:19 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs