Penny stock pulls back on offering up more of its shares amid ‘current market conditions’
As some biotechs continue to rethink IPOs or SPAC deals in the current market, other companies are pausing on selling off more shares.
The Boston-based RNA biotech TransCode Therapeutics on Tuesday announced that it has withdrawn its S-1 filing with the SEC that it made in late November. TransCode said in a brief press release that the withdrawal is reflective of TransCode’s belief that “current market conditions are not conducive for an offering on terms that would be in the best interests of the company’s stockholders.”
TransCode’s stock $RNAZ currently sits well into the penny stock zone, where it has been sitting since October, at $0.67 per share, and has taken a 77% drop since the beginning of the year. The price did rise to around 45% since opening Wednesday, however.
According to TransCode’s S-1, it was planning to offer up to 12.5 million shares with the fund with a possible $5.1 million going its way. The funds would be used to move its lead candidate forward, more R&D for its other candidates and working capital.
The lead candidate, dubbed TTX-MC138, is currently in the preclinical stage and designed to treat metastatic cancers by inhibiting “microRNA-10b” to eliminate the metastasis. Researchers hope it can work against several cancers including breast, pancreatic and colon, among others.
TransCode first entered the stock market in the summer of last year, pricing its IPO at $4 a share and offering 6.25 million shares. However, it was planning to offer 2.8 million shares between $8 and $10 a share.
But the news has not been the greatest for those biotech companies trying to make moves on the market as conditions have been rocky.
Just today, Intrinsic Medicine and its blank-check partner Phoenix Biotech Acquisition Corp. called off their reverse merger Tuesday night, citing “current market conditions” for the deal not going forward. In October, Sanaby Health came onto the scene during the SPAC boom, but it couldn’t hold on in the current ecosystem, with Sanaby dissolving and being liquidated after it couldn’t find a partner.
And last month, Elicio Therapeutics secured $37 million of its planned $40 million Series C, but the company had to take a step back from listing on Nasdaq and work with the funding raise.