GENEVA - Addex Therapeutics (SIX: ADXN), a clinical-stage pharmaceutical company, has announced the establishment of an at-the-market (ATM) offering program. Through this arrangement with H.C. Wainwright & Co., LLC, Addex may periodically sell American Depositary Shares (ADSs) up to a total of $2.1 million.
This sales agreement leverages the company's effective registration statement on Form F-3 and allows H.C. Wainwright to sell the ADSs on various trading markets, including The Nasdaq Capital Market. The transactions will adhere to legal requirements and could be subject to company-imposed conditions such as price and volume limits.
Under the terms of the agreement, H.C. Wainwright will receive a 3% commission on the gross proceeds from the sales of ADSs. Both Addex and H.C. Wainwright retain the right to suspend or terminate the offering upon notice, subject to certain conditions.
Addex emphasizes that this press release does not constitute an offer to sell or a solicitation of an offer to buy these securities. Furthermore, no sales under the ATM will be conducted in Switzerland.
The company is engaged in developing allosteric modulators for neurological disorders, a new class of small molecule drugs. Addex's lead drug candidate, ADX71149, is undergoing a Phase 2 clinical trial for epilepsy treatment. Its second clinical program, dipraglurant, is being evaluated for potential development in post-stroke recovery. Additionally, Addex has licensed its GABAB PAM program to Indivior PLC, focusing on substance use disorder.
The company also has a preclinical pipeline that includes treatments for chronic cough, stress-related disorders, schizophrenia, psychosis, mild neurocognitive disorders, and depression.
The details of the ATM Agreement outlined in this announcement are not exhaustive and are fully described in the agreement's full text, which is referenced for complete information.
This news is based on a press release statement from Addex Therapeutics. The company's shares are traded on the SIX Swiss Exchange and the NASDAQ Capital Market under the ticker symbol ADXN.
InvestingPro Insights
In light of Addex Therapeutics' recent announcement regarding their ATM offering program, insights from InvestingPro shed light on the company's financial health and market performance. Addex Therapeutics holds more cash than debt on its balance sheet, providing a measure of financial stability. However, analysts at InvestingPro have flagged concerns such as the company's rapid cash burn and weak gross profit margins. This is particularly relevant as the company embarks on new financing ventures. Additionally, the stock has been identified as being in overbought territory according to the RSI, which could suggest a potential retraction in the near future.
From a market perspective, Addex's stock has seen a significant return over the last week, month, and three months, with a 25.66%, 79.67%, and 72.81% price total return respectively. Despite this recent uptick, the company's year-to-date price total return stands at 79.67%, indicating a strong performance since the beginning of the year.
InvestingPro data highlights a market capitalization of $12.61M USD for Addex, with a notably high revenue growth of 65.32% in the last twelve months as of Q3 2023. Nonetheless, the company's gross profit margin during the same period was -275.12%, emphasizing the challenges it faces in translating revenue growth into profitability.
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