Specialty pharmaceutical firm China SXT Pharmaceuticals (NASDAQ:SXTC) saw its stock go on an upward move yesterday after it made a major announcement. The China SXT Pharmaceuticals stock ended the day with gains of as much as 21% and hence, at this point, it may be a good time for investors to take a closer look at the actual announcement.
Trading Data
On Tuesday, SXTC stock surged 20.63% to $0.2123 with more than 26.32 million shares, compared to its average volume of 1.47 million shares. The stock has moved within a range of $0.1661 – 0.2550 after opening trade at $0.1661.
Latest Press
The company announced yesterday that it had managed to successfully complete the public offering of its ordinary shares along with prefunded warrants that entitle the holders to buy ordinary shares. It should be noted that the offering was of an underwritten nature.
China SXT Pharmaceuticals managed to raise as much as $4.1 million from the offering in gross proceeds. It has been calculated that as many as 22,777,774 ordinary shares in China SXT Pharmaceuticals had been made available for the offering.
While it is true that offerings of such magnitude can often prove to be a source of pessimism among investors, it was not the case with the China SXT Pharmaceuticals stock. The announcement proved to be a positive trigger for the stock and it ended up with significant gains amidst heavy interest.
Technical Data
SXTC stock is below the 20-Day and 50-Day Moving averages of $0.41 and $0.60 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.07. The stock is down 62% in the past month.
