Street Calls of the Week
BioXcel Therapeutics, Inc. (NASDAQ:BTAI), a biopharmaceutical company currently trading at $1.82 per share, announced today the establishment of an at-the-market equity offering program. The company, which has seen its stock decline by 95% over the past year according to InvestingPro data, may sell up to $8,135,000 of its common stock under the agreement with Canaccord Genuity LLC.
The Equity Distribution Agreement, dated April 3, 2025, allows the company to issue shares through Canaccord acting as a sales agent. Sales will be conducted on an "at the market" basis, meaning they can be executed at prevailing market prices at the time of the sale. The sales will occur on The Nasdaq Capital Market or other existing trading markets for the common stock. With a current market capitalization of just $9.98 million and a weak financial health score according to InvestingPro, this offering represents a significant portion of the company’s market value.
BioXcel has set the parameters for the sale, which include the number of shares to be sold, the period of the sales, a cap on the number of shares that can be sold in a single day, and a minimum price threshold. Canaccord is entitled to a commission of up to 3.0% of the gross proceeds from the sale of any common stock under this agreement. Additionally, BioXcel will reimburse Canaccord for certain expenses related to the agreement.
The offering is pursuant to a shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission (SEC) on November 2, 2023, and became effective on November 13, 2023. A prospectus supplement associated with the offering was filed with the SEC on the date of the agreement.
This equity offering program aims to provide BioXcel with a flexible financing option to support its operations and growth initiatives. The company, which currently maintains a debt-to-capital ratio of 0.95 and reported an EBITDA of -$64.5 million in the last twelve months, has not specified the exact use of the proceeds from the sale of the common stock. InvestingPro analysis reveals 11 additional key insights about BioXcel’s financial position and market performance, available exclusively to subscribers.
The legal opinion regarding the validity of the shares to be issued and sold has been provided by Honigman LLP, as reflected in the related exhibits filed with the SEC. For detailed analysis of BioXcel’s financial position and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
This report does not constitute an offer to sell or a solicitation of an offer to buy the securities discussed. The offering of these securities will only be made by means of the prospectus supplement and the related registration statement. The information in this article is based on a press release statement.
In other recent news, BioXcel Therapeutics is facing potential delisting from The Nasdaq Capital Market due to non-compliance with the market value of listed securities requirement, having fallen below the $35 million threshold for 30 consecutive business days. The company is appealing this determination, which will delay the delisting process. Additionally, BioXcel has reported progress in its SERENITY At-Home pivotal Phase 3 trial, having enrolled 100 patients, half of the expected total. The trial aims to evaluate the safety of BXCL501, an investigational drug for treating agitation in patients with bipolar disorders or schizophrenia. The company has bolstered its financial position by raising $14 million, bringing its cash reserves to approximately $35 million, which will support the ongoing trial. In another development, BioXcel has achieved 33% enrollment in the same trial, with 23 clinical trial sites established. Despite these advancements, BofA Securities has maintained its Underperform rating on BioXcel Therapeutics, with a price target of $4.00, citing concerns about the company’s ability to expand its pipeline. The FDA’s recent site inspection of the TRANQUILITY II phase 3 trial has concluded positively, which has been a favorable development for the company.
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