ContraVir Pharma Falls on Secondary Offering Pricing

ContraVir Pharmaceuticals Inc. (NASDAQ: CTRV) has watched its shares ride the proverbial roller-coaster this week. The stock shot up following positive results from a hepatitis B study earlier this week, but now it’s back down after the pricing of its secondary offering was announced.

The company is offering roughly 4.93 million shares of its common stock and warrants to purchase up to 2.46 million shares of the common stock at a fixed combined price to the public of $1.42. The shares of common stock and warrants will be issued separately.

The warrants will be exercisable beginning on the date of issuance for a period of five years from the issuance date at an exercise price of $1.70 per share.

ContraVir expects the gross proceeds from this offering to be $7 million, before deducting the underwriting and offering expenses.
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The company intends to use the net proceeds from this offering to fund its research and development activities, including ContraVir’s ongoing clinical trials, and for working capital and other general corporate purposes, and possibly acquisitions of other companies, products or technologies, though no such acquisitions are currently contemplated.

So far in 2016, and excluding Wednesday’s move, ContraVir has outperformed the broad markets, with the stock up 8% year to date. Over the past 52 weeks, the stock is down nearly 50%.

Shares of ContraVir were last seen down 24.5% at $1.24 on Wednesday, with a consensus analyst price target of $6.00 and a 52-week trading range of $0.76 to $6.28.