Why Did AIM Stock Plummet 35% Today?

• The warrants are priced at a 14% discount to Thursday’s closing price.
• On Thursday, the biotech firm announced positive results from a Phase 2 trial of Ampligen to treat recurrent ovarian cancer patients.
• Additional data on progression-free survival and overall survival are expected in January 2027.

Shares of AIM ImmunoTech (AIM) plunged more than 35% on Friday after the biotech firm’s latest financing move, which allows certain accredited investors to exercise existing warrants for up to 8.7 million common shares at a reduced price.

AIM shares plunged to their lowest levels since June 2025, when it had executed a 1-for-100 reverse stock split.

AIM’s Discounted Pricing

AIM ImmunoTech announced an agreement with certain accredited investors to exercise outstanding Class A, Class B, Class C, Class D, Class E, and Class F Warrants for $0.48 per share to raise $4.2 million in gross proceeds. This represents a 14% discount to Thursday’s closing price.

The late-stage biotechnology company said the funds will mainly be used for working capital and other general corporate purposes.

As part of the deal, investors who immediately exercise their existing warrants for cash will receive new unregistered warrants in a private placement, the company said. The new warrants will allow investors to buy up to 17.4 million common shares at $0.60 per share over the next five years.

AIM’s Positive Data From Ovarian Cancer Study

This comes a day after AIM ImmunoTech announced positive final primary endpoint results from a Phase 2 clinical trial evaluating its experimental drug, Ampligen, in patients with recurrent ovarian cancer. The study tested Ampligen in combination with Merck’s immunotherapy Pembrolizumab and chemotherapy drug Cisplatin.

Results showed a 50% objective response rate (ORR), with 21% of patients achieving complete responses. ORR measures the percentage of patients whose tumors either shrink or completely disappear after treatment.

The trial also reported a 79% clinical benefit rate and a median overall survival of 32.5 months. Some patients experienced durable responses lasting more than 70 months. Importantly, no Grade 4 or Grade 5 toxicities were observed during the study. Additional data on progression-free survival and overall survival are expected in January 2027.

Retail Bets On AIM’s Cancer Therapy

Retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, while message volumes on the platform rose by 200%.

One user expects a potential for rerating.

The stock has declined more than 70% so far this year.

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