The stock of Acasti Pharma (NASDAQ: ACST) increased by 16.75% on Tuesday before the opening bell. The rise followed a decline of -0.84% or -$0.01 per share in regular session and an update on the use of the company’s equity offering.
What was the update?
Acasti is a biopharmaceutical company with a documented history of researching, developing, and commercializing prescription drugs using OM3 fatty acids delivered both free on the liposome and bound to phospholipids.
Last day Acasti Pharma provided an update on the use of its “at-the market” equity offering program as required pursuant to the policies of the TSX Venture Exchange.
- The Acasti entered into an amended and restated ATM sales agreement with three of its agents on June 29, 2020 to implement an “at-the-market” equity offering program.
- Those include H.C. Wainwright & Co., LLC, Oppenheimer & Co. Inc. and Riley FBR Inc.
- Acasti will be permitted to sell certain of its common shares having an aggregate offering price of up to $75 million through those Agents under this “ATM Program”.
- Based on the ATM Program, Acasti has distributed an aggregate of 20,159,229 common shares since last distribution reported on January 27, 2021, with gross proceeds of US$21.70 million to the Company.
- At an average market price of $1.0747 per share, ATM shares were sold at prevailing market prices.
- To the best of the Company’s knowledge, no securities were offered for purchase on the TSXV or in Canada.
- A registration statement on Form S-3 as of July 7, 2020 was used in conjunction with a Sales Agreement for the sale of the ATM Shares.
- A commission of 3.0% of the aggregate gross proceeds raised for services provided by the Agents was paid to them in accordance with the Sales Agreement.
- The ATM sales recently concluded resulted in a total number of shares outstanding equal to 200,119,659 as of March 5, 2021.
- Acasti has strengthened its balance sheet with the additional funding which will provide the company with flexibility in evaluating important strategic alternatives in its ongoing review process.