Tonix Pharmaceuticals stock falls after announcing $225 million share offerings

Published 12/06/2025, 16:34
© Reuters.

Investing.com -- Tonix Pharmaceuticals Holding Corp (NASDAQ:TNXP) stock dropped 10.8% after the company announced plans to sell up to $225 million in common stock through two separate offerings.

In a regulatory filing on June 11, 2025, Tonix revealed it has entered into a Sales Agreement with A.G.P./Alliance Global Partners (NYSE:GLP) to offer up to $150 million of its common stock in an "at the market offering." The company will pay A.G.P. a 3.0% commission on gross proceeds from each sale.

Simultaneously, Tonix entered into a Purchase Agreement with Lincoln Park Capital Fund, allowing the company to sell up to an additional $75 million in newly issued shares. This agreement replaces a prior arrangement between Tonix and Lincoln Park from August 2022.

Under the Lincoln Park agreement, Tonix can direct Lincoln Park to purchase up to $500,000 worth of shares per transaction, with potential increases to $750,000 if the stock price exceeds $30, or $1 million if it exceeds $40.

The shares will be offered under Tonix’s effective shelf registration statement filed with the SEC on September 20, 2024, and declared effective on September 30, 2024. The company is not obligated to sell any shares under either agreement.

The significant stock dilution potential represented by these offerings appears to be driving today’s negative market reaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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