The company said that the originally announced offering of $60 million was increased to $85 million to allow for the inclusion of an investor who had a pre-existing investment right.
X4 Pharmaceuticals (XFOR) on Wednesday announced the closing of an upsized private placement of over 11 million shares of common stock and pre-funded warrants to purchase nearly 49 million shares of common stock for total offering proceeds of $85 million.
The company said that the originally announced offering of $60 million was increased to allow for the inclusion of an investor who had a pre-existing investment right.
X4 intends to use the net proceeds from the offering for continued development towards a potential additional approval of Mavorixafor in chronic neutropenia, in addition to the commercialization of the drug for the treatment of WHIM syndrome.
On Stocktwits, retail sentiment around the stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels.
A Stocktwits user expressed optimism about the placement and the additional funding.
However, another user opined that the stock would trade 200% higher if the news were that positive.
H.C. Wainwright analyst Swayampakula Ramakanth lowered the firm’s price target for the XFOR stock to $3.50 from $7 and kept a ‘Buy’ rating on the shares, according to The Fly.
The firm updated the company’s model to reflect the second-quarter (Q2) report and the private placement. The capital raised strengthens the balance sheet and aids in meeting the Hercules Loan covenant obligations, the analyst told investors in a research note.
X4 on Tuesday announced that its President and Chief Executive Officer, Paula Ragan, and Chief Financial Officer Adam Mostafa have stepped down from their respective roles.
X4 Board of Directors appointed Adam Craig as Executive Chair, John Volpone as President, and David Kirske as Chief Financial Officer, effective immediately.
XFOR stock is down 86% this year and 83% over the past 12 months.
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