Atossa Genetics (ATOS) Stock: Falling Hard On Offering


Atossa Genetics Inc (NASDAQ: ATOS) is having an overwhelmingly rough day in the market today and for good reason. The company announced a stock offering that it has priced at a deep discount, putting the fear of dilution in the minds of its investors and causing the stock to tumble downward. Of course, our partners at Trade Ideas were the first to alert us to the losses. At the moment (10:00), ATOS is trading at $0.48 per share after a loss of $0.37 per share (43.39%) thus far today.

ATOS Falls On Offering

As mentioned above, Atossa Genetics is having a rough time in the market today after the company announced a stock offering that it has priced with a very deep discount. In a press release, the company announced that it plans on selling 11.50 million shares at a price of $0.44 per share. That’s a discount of 48% below the previous closing price on the stock of $0.85 per share. Of course, this is going to cause dilution, which is causing fear among investors.

Nonetheless, ATOS said that it is expecting to drive proceeds in the amount of $5.1 million from the offering. These proceeds will be used for general corporate purposes. In the press release, the company also said that it has granted the underwriter an over-allotment option to purchase up to an additional 1,000,000 shares of common stock. While the offering is subject to the satisfaction of customary closing conditions, it is expected to close on October 30, 2017.

In Other News

Outside of the offering, ATOS reported positive news yesterday. That news was the result of the company’s Phase 1 clinical study of its proprietary oral Endoxifen for the treatment of breast cancer patients who are refractory to tamoxifen. The company said in yesterday’s press release that all objectives of the clinical trial were met. The trial was designed to assess the safety, tolerability, and pharmacokinetics of oral Endoxifen. On the safety side, there were no significant safety signals nor any clinically significant adverse events. On the tolerability side, Atossa Genetics said that the treatment was tolerated at all dose levels as well as dosing durations used in the study. Finally, on the pharmacokinetics side, ATOS said that the treatment demonstrated blood levels that have been associated with a therapeutic effect in the adjuvant setting in women with breast cancer.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on ATOS. In particular, we’re interested in following the company’s ongoing work surrounding Endoxifen. We’re also interested in following the company through the use of the more than $5 million in proceeds it will receive through the offering, albeit at the cost of dilution. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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