AIkido Pharma (AIKI) Stock Is Up After Raising Funds At A Premium

Aikido Pharma AIKI Stock News

AIkido Pharma Inc (NASDAQ: AIKI) is having yet another strong day in the market today. After a strong climb in value yesterday, led by the licensing of COVID-19 related technology, investors are excited about funds that are being raised at a premium. Here’s what’s happening:

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AIKI Stock Heads Up On Fund Raise

In general, fund raises lead to declines. Fears of dilution lead to investors selling off shares. However, in the case of AIkido Pharma, we’re seeing anything but. In fact, the stock is climbing after the company said that it will raise $14 million. So, what’s the deal?

Well, even after today’s gains, AIKI stock is trading well under $1 per share. However, in the press release, the company said that it will sell 14 million shares of common stock at a purchase price of $1.00 per share. That means that who ever is buying this stock is willing to pay a premium to get their hands on a large amount of it.

In the release, the company said that the offering is expected to close on or about April 16, 2020. Of course, the deal is subject to the satisfaction of customary closing conditions.

Why This Is Such Big News

There are a couple of factors at play that seem to be leading AIKI to the top. First and foremost, as mentioned above, it is rare to see a premium payed in a registered offering of common stock. AIKI announced one of these rare cases when it announced the pricing of this offering. That’s a big deal. However, the excitement goes well beyond this.

As mentioned above, yesterday, AIkido Pharma announced that it licensed a technology that has the potential to be effective in the treatment of COVID-19 and other viruses. That’s a big deal. Let’s face it, as the world changes, there is a desperate need for antivirals, vaccines, and other medical tools in the fight against the coronavirus.

However, as we all know, the development of any medicine or medical technology can be an expensive process. While AIKI is likely to get its hands on grant money for the development, this fund raise gives the company plenty of a financial runway to start this very important work. As a result, this is a stock that investors should be paying close attention to.

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1 thought on “AIkido Pharma (AIKI) Stock Is Up After Raising Funds At A Premium”

  1. Yeah a lot of us paid attention to it yesterday when it climbed to $2.44 on their announcement of their license agreement. Less than 2 hours later they pulled the rug out from under their investors when they announced an offering. Unethical and orchestrated move costing many investors a lot of money, myself included. The average investor who loaded up above $2 got crushed. The CEO of Aikido Parma Inc is a corrupt SOB and you’d be mistaken if you don’t think I’m not going to short the hell out of this stock to recoup my loss.

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