RNN ~ Rexahn surprises investors with financing announcement(remember this)
Rexahn surprises investors with financing announcement
By M.E. Garza Published: March 28, 2011 11:46:19 PM PDT
Investors in Rexahn Pharmaceuticals (Amex: RNN) were shocked after the company announced today that it had received commitments from certain institutional investors to purchase an aggregate of $10 million of Rexahn’s securities in a registered direct offering which raised the company $9.45 million.
The financing was done at the purchase price of $1.20 per share with warrants to purchase additional shares exercisable at a price of $1.50 per share.
Shares were temporarily halted monday afternoon. After trading resumed, the news sent shares of the company down over 24% to a close after regular trading at $1.07. After hours, the shares traded higher to $1.12 up 4.67% higher.
Part of the surprise felt by shareholders came due to the fact that during the recent Roth Conference in California, the company had told a group that the company was anticipating an additional investment from Teva Pharmaceutical (Nasdaq: TEVA) as part of their on-going agreement with respect to the commercialization and development of RX-3117, under which on September 16, 2009 Teva agreed to purchase shares of Rexahn's common stock for $3.5 million. Teva Pharmaceuticals had upped its investment in Rexahn to 6.3 percent in January and rumors among Wall Street brokers and traders had RNN ready to announce the additional investment in the days ahead. That official news announcement may still be in play, according to our sources. In addition, Several analysts continue to expect that RNN shares will be trading many multiples higher this fall after the company completes key clinical trials and resumes negotiations with Big Pharma for a partnering/licensing deal.
Recently, shares have been in a down-trend and investors had been treading cautiously after founder and CEO Dr. Chang Ahn announced that he would relinquish the chief executive title and serve as the company’s chief science officer and chairman- a move favored by some insiders given Dr. Ahn's strengths in the laboratory, versus the dais. Rexahn expects to name a replacement for Ahn by September and sources tell BioMedReports that several distinguished candidates with experience negotiating drug licensing agreements have been already been interviewed for the job. The perceived fragile and uncertain state of the company, is another reason why the investment community feels the timing of today's announcement could not have come at worse time.
Rexahn is developing a robust late-stage portfolio of drugs for cancer, sexual dysfunction and nervous system disorders- including three experimental drugs in critical Phase II clinical trials.
We will keep you posted as the story develops and we get further information.
CEO only? All these share offerings this past 2 years were MUCH higher as well. To me this is very GOOD sign. Large players not to through down CASH at much higher. We should see a market correction VERY SOON and true RNN PP$ valutation will be seen....imo!
Anyone have the count on current SHORT numbers? Noticed volume start to pickup a bit today. Almost at double the 10 day. I mean not much but better....