Why Genelux Corporation (GNLX) Shares Are Down 40%

Genelux Corp GNLX shares are trading lower by 40.7% to $2.73 during Friday’s session after the company announced the pricing of an underwritten offering of 6.875 million shares of its common stock and accompanying warrants at $4.00 each.

Each warrant allows the purchase of an additional share at $5.25, exercisable immediately and expiring in five years. The offering, expected to close around May 29, 2024, aims to raise approximately $27.5 million before expenses.

The funds will support corporate activities and the clinical development of Olvi-Vec, with Phase 3 trial results expected in the latter half of 2025. Genelux also granted underwriters a 30-day option to purchase up to an additional 1,031,250 shares and warrants for over-allotments.

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How To Buy GNLX Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Genelux’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, GNLX has a 52-week high of $40.98 and a 52-week low of $2.50.