Shares of biopharmaceutical company Hoth Therapeutics (NASDAQ:HOTH) are tanking today after the company announced a private placement of about two million shares and warrants for gross proceeds of about $10 million.
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The transaction is expected to close on or about January 3. Hoth plans to use the funds raised to further its R&D pipeline as well as for working capital and general corporate needs.
The development comes fresh on the heels of a nearly 250% rise in the company’s share price over the past five days after the U.S. Food and Drug Administration (FDA) accepted its new drug application (IND) for HT-001.
HT-001 is targeted for the treatment of rash and skin disorders resulting from epidermal growth factor receptor (EGFR) inhibitor therapy. The Phase 2a trial of the drug is anticipated to start in Q1 2023.
HOTH shares have corrected nearly 40% in 2022 and the stock is currently seeing a short interest of 1.71%.
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