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News  ›  Benzinga

Why Is Dermata Therapeutics Stock Surging Wednesday?

Benzinga Logo Benzinga By Lekha Gupta
Why Is Dermata Therapeutics Stock Surging Wednesday?

Dermata Therapeutics (NASDAQ: DRMA) stock surged 20.10% on Wednesday following the announcement of a $12.4 million private placement offering. The company will issue 2,022,062 common shares and warrants priced at $2.04 per share, with expected gross proceeds of $4.1 million. If warrants are fully exercised, the company could raise an additional $8.3 million. Net proceeds will fund consumer research, OTC acne kit launch activities, and working capital. The stock is trading near its 52-week low of $1.96.

Insights
GSpA   neutral

Mentioned as a joint book-running manager for the offering, performing a standard financial service role


DRMA   positive

Stock surged 20.10% on announcement of $12.4 million private placement offering with insider participation, providing capital for product launch and operations. However, the positive sentiment is tempered by the stock trading near its 52-week low, indicating underlying weakness despite the near-term rally.