Reviva Pharmaceuticals Holdings, Inc. (RVPH) saw its shares plunge more than 42% overnight after announcing a proposed public offering of common stock and warrants. The company said all securities in the offering would be sold by Reviva, with A.G.P./Alliance Global Partners acting as the exclusive placement agent.
The biotech firm intends to use the proceeds to fund its upcoming Phase 3 RECOVER-2 trial of Brilaroxazine in schizophrenia, as well as for research, development, and general corporate purposes.
Brilaroxazine, Reviva's lead candidate, is being positioned as a next-generation therapy for central nervous system disorders, with potential applications beyond schizophrenia.
Reviva, which also has another in-house compound called RP1208, holds patents across the U.S., Europe, and several other regions. The company emphasized that the offering remains subject to market conditions, with final terms yet to be determined.The upcoming Phase 3 trial will be a pivotal milestone for Reviva, as success could help restore momentum and validate Brilaroxazine's potential in addressing unmet needs in mental health.
The company recently implemented a 1-for-20 reverse stock split on March 9, 2026.
RVPH closed Wednesday's trading at $1.87, down 19.40%. During the overnight session the stock fell further to $1.08, down 42.25%.
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