Why Did Aethlon Medical Stock Tumble Over 12% Today?

Aethlon Medical's stock drew investor attention after the company announced a private placement and warrant inducement deal.

• The company’s transaction is expected to raise about $3.3 million.
• On Stocktwits, retail sentiment surrounding the stock was ‘extremely bullish,’ amid ‘extremely high’ message volume.

Shares of Aethlon Medical (AEMD) plunged over 12% on Friday after the company announced a private placement and warrant inducement deal. 

The combined deal is  about $3.3 million for the medical therapeutic company, according to a statement. The terms include the sale of 595,897 shares to a single institutional investor and warrants to purchase up to 1,042,820 shares, exercisable at a combined effective price of $4.03 per share.

Aethlon has also agreed to a warrant inducement agreement to exercise certain outstanding warrants issued in March and September 2025 at a lowered exercise price than earlier. 

Additional Warrant Sales

Aethlon’s agreement allows the immediate exercise of warrants to purchase up to 210,555 shares. In addition to the above, the company is issuing the same investor unregistered warrants to purchase up to 368,471 shares at $4.03 per share, with an expiry of five and a half years. 

A share warrant gives the holder the right to buy shares at a predetermined price. If exercised, it can dilute existing shareholders' ownership. The transaction is likely to close around Dec. 8, 2025. 

While Aethlon did not report any revenue for the second quarter (Q2) of 2025 since it does not have a commercial product yet, it significantly  for the period to about $1.5 million, a 48% decrease from the year before due to lower payroll, general and administrative, and professional fees. 

"Our ongoing trial progress, research collaborations, and technology initiatives continue to support our long-term goal of developing therapeutic solutions for cancer and life-threatening infectious diseases," said James Frakes, CEO and CFO of Aethlon Medical in the quarterly update. 

How Did Stocktwits Users React?

On Stocktwits, retail sentiment toward the stock remained ‘extremely bullish,’ and message volume was ‘extremely high’ at the time of writing. 

AMED shares have lost about 94% in value year-to-date. 

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