Tonix Pharma Stock Plunges 20% Pre-Market On Share Sale Announcement, But Retail's Not Pessimistic

Shares of Tonix Pharmaceuticals Holding Corp. (TNXP) traded 22% lower in Thursday's pre-market session after the company announced share sale plans on Wednesday.

The company entered into a sales agreement with A.G.P./Alliance Global Partners, serving as the sales agent, under which it intends to sell $150 million of shares of its common stock.

Tonix also entered into a purchase agreement with Lincoln Park Capital Fund, LLC, under which the company will have the right to sell up to $75 million of newly issued shares of common stock to the firm. 

The proceeds from the purchase agreement are expected to be used for working capital and general corporate purposes.

The biotech company focused on developing therapies for pain management is currently looking forward to a potential approval of TNX-102 SL for the treatment of fibromyalgia. FDA's decision on its application for approval is due by Aug. 15, and the company is anticipating a product launch in the fourth quarter of 2025.

A Stocktwits user expressed skepticism at the potential share dilution.

Another user highlighted the company's debt-free status and opined that the move is not a desperate measure.

The company has cash and cash equivalents of $131.7 million as of the first quarter, which it said would be sufficient to fund operations into the second quarter of 2026

Retail sentiment around Tonix on Stocktwits rose from 'bearish' to 'neutral' territory over the past 24 hours while message volume jumped from 'low' to 'high' levels.

According to data from Koyfin, the two analysts covering the stock rate it a 'Buy'. The stock has an average price target of $61.67, representing an upside of over 60% from current trading levels.

TNXP stock is up by about 20% this year but down by approximately 66% over the past 12 months.

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