Why ContraFect (CFRX) Shares Are Getting Hammered

ContraFect Corp CFRX shares are trading lower by 28.70% to $3.38 Tuesday morning after the company announced pricing of a $10 million registered direct offering and concurrent private placement.

What Else?

ContraFect says the combined effective purchase price for each share of common stock and associated warrants will be $4.00.

Under the terms of the securities purchase agreement, ContraFect has agreed to issue 128,000 shares of common stock and pre-funded warrants to purchase 2,372,000 shares of common stock.

In the concurrent private placement, which will be consummated concurrently with the offering, ContraFect says the company also has agreed to issue warrants to purchase up to 5,000,000 shares of common stock.

See Also: Here's Why AMC Shares Are Popping Off

According to data from Benzinga Pro, CFRX has a 52-week high of $363.20 and a 52-week low of $3.02.