If you’ve been following the penny stock, Moleculin Biotech (MBRX Chart), you would have likely seen a dramatic rally over the better part of the last few trading days. Why did Moleculin Biotech end up running earlier this month? As originally reported, the biotech penny stock made an announcement regarding its ongoing research it has undertaken at the University of Texas MD Anderson Cancer Center. The research showed that the company’s Annamycin is able to improve survival rates in animal models.
Why Did MBRX Stock Decline?
You would think that with so much attention and momentum, Moleculin would move higher. But as with many penny stocks, price appreciation and high liquidity open doors to funding. In line with this, Moleculin, in fact, did accomplish its task of raising money during the flurry of market activity.
How much money did MBRX raise? According to its press release, the biotechnology company entered into definitive agreements with institutional investors to purchase roughly 9.375 million shares at a price of $1.60. The gross amount of money raised was about $15 million.
Where Can Moleculin Stock Go From Here?
The market will dictate the next move for the penny stock. For the financiers, the price per share was quite the haircut on the closing price on April 22. At that time, MBRX stock traded as high as $3.19 during the aftermarket session. But with many instances of a capital raise, the market will trade around the price that the raise was done.
So, it isn’t unusual to see that the price of this penny stock trading at the level it’s at. Unfortunately, it has left many investors still holding the bag. Will Moleculin ever return to its $3+ price per share? Leave us a comment below.
