Shares of small modular reactor development company Nano Nuclear Energy (NNE) lost 25% on Monday.
The drop in share value was triggered by the company’s announcement that it had executed a private placement sale of NNE shares to Three accredited investors.
The details of the deal indicate that NANO Nuclear is selling 2.5 million shares for $24 per share. The placement will generate approximately $60 million in proceeds for the company. Each share also comes with a five-year warrant to buy another share for $26.
Nano Nuclear shares have seen a parabolic rally over the last three weeks that doubled the stock’s price.
The rally surged shares into a technically overbought reading of their RSI last week as the stock price closed above $30 for the first time ever. That overbought reading indicated that Nano Nuclear shares were ready for a healthy correction.
Shares of NNE found support at the $25 price level. This round-numbered support is likely to hold the stock from further declines. That said, a break below $25 would target another 20% decline to support at $20.
The stock began public trading in May at a price of $4.00 per share.
Recent headlines regarding technology companies like Microsoft, Alphabet and Amazon planning to address their growing energy needs for AI have drawn attention, and investors, to Nano Nuclear Energy as a long-term investment.
Nano Nuclear shares are in a long-term bullish trend with a price target of $50.
Cassava Sciences (SAVA) stock dropped 87% on Monday to close the day’s trading at $4.29 a shares.
Cassava is a biotechnology company primarily focused on the research and development of drugs for neurodegenerative diseases, such as Alzheimer's disease.
The company’s stock has traded as high as $146 since 2021 on speculation that the company’s pipeline of treatments would yield profitable results. In addition, the stock became popular among “Meme Traders” in 2021 and 2022, pumping share values higher.
Today’s drop came due to the failure of their Phase 3 trial for simufilam, a treatment for Alzheimer's disease. The trial did not meet its primary endpoints, resulting in the significant price drop.
This was not Cassava Sciences' first trial failure. The company has had previously setbacks with their Alzheimer's drug, simufilam.
Despite showing promise in earlier stages of research, Phase 3 trials have proven challenging. The company has had difficulties demonstrating significant improvement in Alzheimer's symptoms in these later-stage trials.
Today’s price drop was magnified by short sellers that reportedly jumped on the opportunity created by the company’s phase three trial failure.
At less than $5 per share, Cassava stock should be considered extremely speculative given the company’s trial difficulties.
Shares of Hims & Hers Health (HIMS) surged 23% higher on Monday following the announcement of President-elect Trump’s choice to run the Food and Drug administration on Friday.
President-elect Trump has selected Dr. Martin Makary as FDA Commissioner. Dr. Makary who is known for his role in a telehealth company that compounds semaglutide, could positively impact the regulatory landscape for compounded GLP-1 treatments.
Hims & Hers Health sells compounded semaglutide, a type of GLP-1 medication. That medication has become an important part of HIMS product offering given the drug’s popularity.
The regulatory decisions regarding the compounding of GLP-1 medications, such as those pending from the FDA, would directly affect HIMS's ability to continue offering these compounded options.
Today’s move lept the stock above $25, which had been the site of historical resistance. In February of 2021 and June of 2024, shares reversed from $25 amidst dramatic selling pressure.
Monday’s close above $30 mark’s the stocks new all-time highs with shares trading large volume of the stock.
