Tuesday’s biggest losers: Larimar Therapeutics, Hudson Capital, and ToughBuilt Industries
FDA puts Larimar’s CTI-1601 program on clinical hold
Larimar Therapeutics Inc. (NASDAQ: LRMR) shares tanked 52.09% on Wednesday after the company announced that it had received a letter from the FDA about a clinical hold on its CTI-p1601 program. The regulatory agency indicated that it was instituting a clinical hold on the program from now until the company provided additional information required to lift the hold.
The company is analyzing past completed studies, and it is assessing if more studies will be necessary. Larimar also plans to engage the agency to establish the best way to provide the additional data required. For now, the company is reassessing guidance on the planned Jive open-label extension and paediatric multiple ascending dosage clinical studies as it works to address the FDA’s request.
CEO Carole Ben-Maimon stated that patient safety is their priority. The company’s next step is to engage the agency to establish how it can meet its request expeditiously and efficiently.
Hudson Capital shares drop 29% after completing the reverse stock split
Hudson Capital Inc. (NASDAQ: HUSN) shares dropped 29% on Tuesday after the company finalized a 1-for-2.2 reverse stock split and completed the acquisition of logistics tech from Freight App Inc. In addition, the firm said it aims to simplify its financial structure in the coming quarters and take advantage of various growth opportunities, including developing new tech and/or purchasing complementary offerings.
As part of the transaction, the company appointed Fr8App’s leadership to take over its retiring board CFO, Man Yun, and CEO, Warren Wang and also adopted Fr8App’s Houston, Texas headquarters. Javier Selgas and Paul Freudenthaler have been appointed as CEO and CFO with the newly appointed board comprising Selgas and independent directors Marc Urbach, William Samuels and Nicholas Adler.
Selgas commented that the merger comes after almost two years of committed work and investment. He added that Fr8App is becoming a fast-growing transport logistics tech leader for cross-border shipping on the US-Mexico border.
ToughBuilt Industries completes previously announced registered direct offering.
ToughBuilt Industries Inc. (NASDAQ: TBLT) shares dropped 20% after announcing a previously disclosed registered direct offering with some institutional investors for grant and sale of a total of 2,500 shares of Series F Convertible Preferred Stock and 2,500 shares of Series G Convertible Preferred Stock for total proceeds of $5,000,000 before accounting for agent placement fees and offering expenses.
The Series F Convertible Preferred Stock shares have a stated value of $1,000 each share and are redeemable at a price determined of $0.20 per share into a total of 12.5 million common shares. Also, the Series G Convertible Preferred Shares has a predetermined value of $1,000 for each share and is redeemable into 12.5 million common shares at a par value of $0.20 per share. The company plans to use the net proceeds for corporate working purposes.