TRANSTHERA-B (02617) experienced significant volatility in its share price this morning. The stock initially plunged over 9% to an intraday low of HKD 45.24 before staging a strong rebound to HKD 53.8. The share price has since retreated again. As of the latest update, the stock is down 3.14%, trading at HKD 48.24, with a turnover of HKD 129 million.

The company announced plans this morning to place approximately 3.836 million new shares to no fewer than six placees, representing about 0.94% of the enlarged share capital. The placement price is set at HKD 40.83 per share, representing a discount of roughly 18.01% to the closing price of HKD 49.8 on May 18.

Assuming the placement shares are fully subscribed, the gross proceeds are estimated at approximately HKD 157 million, with net proceeds of about HKD 152 million. Approximately 90% of the net proceeds are earmarked for the development of new indications for the company's core product, Tinengotinib. The remaining 10% is intended for general working capital and corporate purposes.

This placement marks the third fundraising activity undertaken by TRANSTHERA-B within the current year.