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Why is Aligos Therapeutics (ALGS) Stock Experiencing a Steep Decline?

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The Reason Behind Aligos Therapeutics Inc’s Stock Plunge

As of Monday afternoon, shares of Aligos Therapeutics Inc (NASDAQ: ALGS) are seeing a significant decline of 15.8% to $0.64. The drop follows the company’s announcement regarding a $92 million private placement financing.

What Led to This Decline?

Aligos Therapeutics secured funding through a private placement, with the participation of notable institutional investors such as Armistice Capital and Roche Venture Fund, under the leadership of a prominent life sciences investment firm. The proceeds from this financing will primarily be allocated to the continued development of Aligos’ drug candidates, including the Phase 2a NASH study and CAM-E candidate, as well as further research to expand their drug pipeline.

The private placement involves the sale of common stock and warrants, with the closing slated for October 25, 2023. Piper Sandler is the exclusive placement agent for this transaction. Aligos Therapeutics anticipates that this funding will sustain its operations until 2025.

It is worth noting that Aligos Therapeutics’ stock has experienced a 52-week high of $2.41 and a 52-week low of $0.59, according to data from Benzinga Pro.

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