- Reviva to use the proceeds for its Phase 3 RECOVER-2 trial for brilaroxazine to treat schizophrenia.
- The company had earlier said that it plans to launch the RECOVER-2 Phase 3 trial in the first half of 2026.
- Reviva implemented a 1-for-20 reverse share split on March 9.
Shares of Reviva Pharmaceuticals Holdings (RVPH) plummeted more than 40% in pre-market trading on Thursday, after the company priced its public offering to raise about $10 million.
If the pre-market levels hold after the opening bell, RVPH shares would fall to a record low.
Offering At 20% Discount
The offering consists of 6.67 million shares, as well as Series G and Series H warrants to purchase an equal number of shares, all priced at a combined $1.50 per share, for total gross proceeds of about $10 million. This represents a 20% discount on the stock’s closing price of $1.87 on Wednesday.
Both warrants are immediately exercisable: Series G is valid for 5 years, and Series H expires in 12 months, the pharmaceutical company said. The offering is expected to close around March 20, 2026.
Reviva said it plans to use the proceeds, along with existing cash, to support research and development, including its Phase 3 RECOVER-2 trial for brilaroxazine to treat schizophrenia. Funds will also be used for working capital and general corporate needs.
Reviva To Begin A Second Phase 3 Trial In First Half Of 2026
In January, the U.S. Food and Drug Administration (FDA) recommended conducting a second Phase 3 trial for its schizophrenia drug candidate to get additional efficacy and safety data before submitting a New Drug Application (NDA).
The company had earlier said that it plans to launch the RECOVER-2 Phase 3 trial in the first half of 2026, subject to funding. Reviva said existing data showed strong efficacy across key symptoms of schizophrenia and a favorable safety profile, with over 900 patients treated so far.
How Did Stocktwits Users React?
Despite the pre-market slump, retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day earlier.
Chatter was mixed. One user said the stock’s upside looks “amazing” and the company may require $60 to $70 million to complete the study.
Another user said there was “no chance” of raising the required funds.
Reviva had announced a 1-for-20 reverse share split earlier this month, with the stock trading on an ex-split basis from March 9.
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