Why Hoth Therapeutics Shares Are Nosediving

Hoth Therapeutics Inc (NASDAQ:HOTH) shares are trading lower by 21.22% to $8.44 Friday morning after the company announced a $10 million private placement priced at-the-market under Nasdaq rules.

The company currently intends to use the net proceeds from the private placement for further development of Hoth's product candidates and for working capital and general corporate purposes.

The private placement is expected to close on or about January 3, 2023, subject to the satisfaction of customary closing conditions.

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According to data from Benzinga Pro, HOTH has a 52-week high of $43.75 and a 52-week low of $2.61.