Why Aligos Therapeutics (ALGS) Stock Is Nosediving

Aligos Therapeutics Inc ALGS shares are trading lower by 15.8% to $0.64 Monday afternoon after the company announced $92 million in private placement financing.

What Happened?

This funding, led by a life sciences investment firm and involving various institutional investors, including Armistice Capital and Roche Venture Fund, will support the development of Aligos' drug candidates, specifically the Phase 2a NASH study and CAM-E candidate, as well as research for expanding their drug pipeline.

The private placement involves the sale of common stock and warrants, with a closing date set for October 25, 2023. Piper Sandler serves as the exclusive placement agent for this transaction.

Aligos believes this funding will sustain its operations through 2025.

See Also: Bill Ackman Exits Treasury Bond Short Position

According to data from Benzinga Pro, ALGS has a 52-week high of $2.41 and a 52-week low of $0.59.