Benzinga | Feb 8, 2021 01:15PM EST

Tonix Pharmaceuticals $70M; Plans To Develop COVID-19 Skin Test

* Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP) has entered into a securities purchase agreement with institutional investors to purchase 58.3 million shares at $1.20 per share, raising gross proceeds of approximately $70 million. The offering is expected to close by February 9.

* A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.

* Earlier today, Tonix received a written response from the FDA to a Type B pre-investigational new drug meeting package describing its technology and plans to develop a diagnostic skin test, TNX-2100 (SARS-CoV-2 epitope peptide mixtures for intradermal administration), to measure the delayed-type hypersensitivity reaction to SARS-CoV-2 (CoV-2).

* TNX-2100 is designed to measure T cell immunity to CoV-2 and comprises three different mixtures of synthetic peptides (TNX-2110, -2120, and -2130), which are designed to represent different protein components of the CoV-2 virus.

* Each of these three tests would be administered as part of the same procedure at separate locations on the forearm. Each is expected to elicit a DTH response after approximately 48 hours in individuals with pre-existing T cell immunity to peptides in that mixture.

* Last month, the company raised $40 million via equity sale of 50 million shares at $0.80 per share.

* Price Action: TNXP shares are trading higher by 18.2% at $1.50 on the last check Monday.