After a more than a 27% rise in value on Tuesday, shares of oncology drug development company Celsion Corporation (CLSN) are giving up some of those gains on Wednesday. The company’s stock was down by -14.05% to $1.53 premarket as of 08:20 a.m. EST today.
The company did not report any news today, but we can probably attribute these losses to two factors. First, it is plausible that some investors have chosen to take some profits after Celsion’s rally yesterday. Second, the stock was offered by the company in its recently closed direct offering of shares of common stock and the last closing price of $1.78 is much higher than that offered price.
How did it go?
Celsion presides over a vertically established oncology company in the discovery phase with a focus on cultivating a range of novel cancer therapies through clinical trials and subsequent marketing. In addition to its underdevelopment products including GEN-1, immunotherapy developed for localized treatment of ovarian cancer, and ThermoDox for the treatment of primary liver cancer, Celsion has progressed to a feasibility stage for the development of novel nucleic acid-based immunotherapy as well as more general DNA or RNA therapies.
Celsion announced on Tuesday that it had closed its previously reported registered direct offering of 25,925,925 common shares at an appraised value of $1.35 per share. Under Nasdaq regulations, the offer was valued on the market, resulting in funds received of $32.6 million, after reimbursing the service charges of placement agents and before operating costs payments made by the Company.
The company’s most recent financial report indicates that the company’s net loss for the nine months ended September 30, 2020, was $18.5 million, or $0.62 per share, compared to $13.7 million ($0.67 per share) in the comparable period in 2019.
It is definitely worth keeping an eye on how things are progressing for Celsion, following yesterday’s good sentiment. But for those ready to pull the trigger now, it’s vital to recognize that the company’s stock is likely to continue to be volatile, even though Celsion’s shares soared more than 27 percent yesterday.