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VolitionRx Limited (NYSE American:VNRX), a diagnostics company with a current revenue of $1.23 million and significant year-over-year growth of 59.1%, has entered into a new sales agreement with JonesTrading Institutional Services LLC, as per a filing with the Securities and Exchange Commission on Tuesday. According to InvestingPro data, the company faces some financial challenges, with a weak overall health score of 1.58 out of 5. The agreement allows VolitionRx to offer and sell up to $7.5 million of its common stock through JonesTrading, which will act as the sales agent.
The shares will be sold as part of an "at the market offering," meaning they can be sold on the NYSE American or other trading markets for the company’s stock, or through privately negotiated transactions. This arrangement is in accordance with the company’s registration statement, which was declared effective by the SEC on April 18, 2025. With a current ratio of 0.52, the company’s short-term obligations exceed its liquid assets, potentially explaining the timing of this offering.
VolitionRx has stated that it is not under any obligation to sell any shares under the new agreement. However, if sales are made, the net proceeds are intended for use in research and development, clinical studies, product commercialization, working capital, and possibly strategic acquisitions. The sales agent will be compensated with a commission of up to 3.0% of the gross proceeds from each sale.
Concurrent with establishing the new sales agreement, VolitionRx has terminated its previous Equity Distribution Agreement with Jefferies LLC, effective April 20, 2025. The terminated agreement was related to an "at the market" offering program for shares of common stock up to $25.0 million, which has now ceased.
This move comes as part of VolitionRx’s ongoing efforts to manage its capital and resources effectively, particularly given its EBITDA of -$25.91 million in the last twelve months. The company is engaged in the development of diagnostic tests for a range of cancer types and has been actively expanding its product portfolio. Analysts maintain a positive outlook, with price targets ranging from $2 to $5, according to InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Report.
The legal opinion of Stradling Yocca Carlson & Rauth LLP regarding the issuance of the shares has been filed with the SEC, alongside the sales agreement. It’s important to note that this SEC filing does not constitute an offer to sell or a solicitation of an offer to buy the shares.
In other recent news, VolitionRx Limited reported a notable revenue increase for the fourth quarter of 2024, with total revenue reaching $1.2 million, marking a 59% rise from the previous year. This growth was primarily driven by the Nu.Q Vet cancer test, which saw a 75% increase in sales. Despite these positive financial results, the company faces ongoing financial challenges, with limited cash reserves at the end of the year. In terms of strategic moves, VolitionRx announced the filing of a new registration statement with the SEC to manage its share registration more effectively, with no new shares being registered. Analyst Yi Chen from H.C. Wainwright maintained a Buy rating on VolitionRx, emphasizing the potential of the company’s Nu.Q platform in cancer diagnostics. Meanwhile, Benchmark analysts held their Hold rating, highlighting VolitionRx’s plans to secure a licensing agreement with a major in vitro diagnostics firm. Additionally, VolitionRx has secured $1.8 million in grant funding for the first quarter of 2025, with the potential to receive an additional $4-5 million over the year.
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