Virax Biolabs Announces Stock Offering: What To Know

Virax Biolabs Group Limited (NASDAQ:VRAX) shares are trading lower Thursday after the company announced a $5 million registered direct offering of ordinary shares. 

The Details:

Virax Biolabs has entered into a definitive agreement for the issuance and sale of an aggregate of 1,108,892 of its ordinary shares at a purchase price of $4.50 per share in a registered direct offering expected to close on or about August 23. 

Virax expects gross proceeds from the offering to be approximately $5 million before deducting the placement agent’s fees and other offering expenses. The company said it intends to use the net proceeds from the offering for working capital and general corporate purposes.

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Virax Biolabs Group produces a test intended to provide a preliminary result for the diagnosis of the mpox virus in humans. Shares of Virax stock gained more than 300% after the World Health Organization, on August 14, declared a public health emergency of international concern in response to the virus’ increasing numbers.

Should I Sell My VRAX Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Virax Biolabs Group have increased by 56.88% in the past year. An investor who bought shares of Virax Biolabs Group at the beginning of the year would make a profit of $4.50 per share if they sold it today. The stock has risen 433.39% over the past month, meaning an investor who bought shares on July 1 would see a capital gain of $4.77.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Virax Biolabs Group stock currently has an RSI of 78.71, indicating overbought conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

VRAX Price Action: According to Benzinga Pro, Virax Biolabs Group shares are down 13.8% at $5.55 at the time of publication Thursday.

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