BriaCell Stock Notches Best Day In 5 Years On Breast Cancer Data — Then Drops 10% After-Hours: What Went Wrong?

Retail chatter on BCTX jumped following the dual news announcements, with Stocktwits sentiment score hitting a one-year high.

• The company announced pricing for a public offering of 5.37 million units, with each unit consisting of one common share and one warrant, priced at $5.59 per unit.
• The price is nearly 49% lower than the company’s closing price of $10.92 on Tuesday.
• The offering is expected to close on Jan. 15, and BriaCell intends to use the net proceeds to fund working capital requirements and general corporate purposes.

BriaCell Therapeutics’ stock surged nearly 43% on Tuesday, marking its best day since June 2021, after the company reported a complete resolution of lung metastasis in a patient with metastatic breast cancer treated with its Bria-OTS immunotherapy.

However, investor enthusiasm cooled after the company announced the pricing of a $30 million public offering. BriaCell said it plans to offer 5.37 million units, each consisting of one common share and one warrant, priced at $5.59 per unit, nearly 49% below Tuesday’s closing price of $10.92. The steep discount spooked investors, sending BriaCell shares down more than 10% in aftermarket trading.

Retail Still Hooked On Positive Data

Chatter on Stocktwits about BriaCell has been picking up steam over the last few hours. Retail sentiment on BriaCell jumped to ‘extremely bullish’ (94/100) from ‘neutral’ territory a day ago, with the score hitting its highest peak in nearly a year. The message volumes on the stock were at ‘extremely high’ levels (98/100), according to data from Stocktwits.

Earlier on Tuesday, BriaCell said that the patient, who achieved a complete resolution, had failed multiple lines of treatment before. The lung metastasis disappeared after four doses of Bria-OTS as a single-agent therapy, with the response first observed at two months and subsequently at four, six, and now eleven months.

A user on Stocktwits said that BriaCell usually reports positive news and eventually issues an offering at a huge discount.

Details Of The Public Offering

The West Vancouver, Canada-based company said that the warrants included in the units have been approved for listing on the Nasdaq Capital Market and are expected to commence trading under the symbol “BCTXL” on Jan. 14.

The offering is expected to close on Jan. 15, and BriaCell intends to use the net proceeds to fund working capital requirements and general corporate purposes. BriaCell had cash and cash equivalents of $10.2 million as of Oct. 31.

Shares of BriaCell have slumped nearly 82% in the last 12 months.

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