Trevi Therapeutics (TRVI) Stock: Why The Price Surged Today

Apr 7th, 2022 10:48 EST
  • The stock price of Trevi Therapeutics, Inc. (NASDAQ: TRVI) increased by over 40% during intraday trading today. This is why.

The stock price of Trevi Therapeutics, Inc. (NASDAQ: TRVI) – a clinical-stage biopharmaceutical company developing an investigational therapy Haduvio (nalbuphine ER) for pruritus in prurigo nodularis (PN) and chronic cough in idiopathic pulmonary fibrosis (IPF) – increased by over 40% during intraday trading today. Investors are responding positively to Trevi Therapeutics announcing that it has entered into a definitive agreement with certain healthcare-focused institutional investors for the purchase, in a private placement priced at-the-market under Nasdaq rules, of (i) 4,580,526 shares of common stock at a purchase price of $1.90 per share, and (ii) pre-funded warrants to purchase up to an aggregate of 24,379,673 shares of common stock at a purchase price of $1.899 per warrant, for gross proceeds of approximately $55 million. 

Trevi Therapeutics plans to use the net proceeds from the private placement for the clinical development of Haduvio for chronic cough in idiopathic pulmonary fibrosis patients as well as for working capital and other general corporate purposes. And the private placement is expected to close on or about April 11, 2022, subject to the satisfaction of customary closing conditions.

Frazier Life Sciences and Venrock Healthcare Capital Partners are co-lead investors in the private placement, and Fairmount (FHVTF) and New Enterprise Associates are also participating. And Stifel is acting as the lead placement agent for the private placement. Needham & Company, Oppenheimer & Co., and Aegis Capital Corp. are acting as co-placement agents for the private placement.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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