Bionovo, Inc. (PINK:BNVI
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) suffered a significant drop on Wednesday, but two announcements by BNVI managed to get the price back up.
BNVI closed up 48.57% at $0.104 per share. Volume was higher than previous sessions, but still slightly below the average.
One of the announcements made by BNVI concerned an offering of convertible preferred stock and warrants, and the other was that David Boyle, CFO and Senior VP of BNVI, will be presenting at a conference on Mar. 5.
The company is offering up to $25 million in convertible preferred stock and warrants to purchase shares of common stock. BNVI stated the completion of the offering was critical for the continued operation of the company throughout 2012.
While this step may in some ways hurt shareholders of common stock, the financial reports of the company suggest it is needed. BNVI plans to use the proceeds to, among other things, finance the Phase 3 clinical trial for its drug candidate, Menerba.
Yesterday's market performance of BNVI suggests shareholders are on board with the idea so far. It will be interesting to see whether support will hold today.