Summary by Moomoo AI
Avenue Therapeutics, Inc. has announced that stockholders holding approximately 56.4% of the voting power have approved by written consent an increase in authorized common stock from 75 million to 200 million shares and the issuance of shares underlying certain warrants. This action, which does not require additional stockholder votes, is in compliance with Nasdaq Listing Rule 5635(d). The board of directors unanimously supported these measures, which are set to become effective no earlier than February 20, 2024. The company has also engaged in a private placement transaction involving inducement offer letter agreements with certain investors, resulting in the issuance of new warrants exercisable for common stock. Avenue Therapeutics, a specialty pharmaceutical company, has been operating at a loss since its inception and has funded operations primarily through securities issuance and borrowing. The increase in authorized shares is intended to provide flexibility for future business and financial transactions, including potential equity offerings and business acquisitions. The company's board reserves the right not to effect the increase if deemed not in the best interests of stockholders.