Avenue Therapeutics: Securities Investigation  

The White Law Group is investigating potential claims involving Aegis Capital Corp. and other brokerage firms for the unsuitable sale and recommendation of investments in Avenue Therapeutics. The company’s common stock is listed on the Nasdaq Capital Market under the symbol “ATXI.”   

Aegis Capital Corp. reportedly underwrote four offerings of Avenue Therapeutics, with a $2,608,695 offering on November 10, 2021, which has experienced a post-offering return of –99.2% as of February 28, 2024. The second offering on December 13, 2021, was for $2,024,451, which had a post operating return of -99.1%. 

In October of 2022, there was an offering of $12,000,000 with a post offering return of -95.4% and in January 2023, a $3,007,463 with a post offering return of -90.2%. 

According to a recent analysis by the financial economics consulting firm SLCG, many offerings underwritten by Aegis Capital were issued by nano-cap companies on the brink of delisting and bankruptcy. Over 95% of Aegis Capital’s underwritings have underperformed the average microcap stock. 

Background on Avenue Therapeutics 

Avenue Therapeutics, Inc. (Nasdaq: ATXI) is a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of neurologic diseases. 

According to Market Watch as of July 1, 2024, shares of ATXI are down more than –96.62% over the past 12 months.

Latest News 

In April 2024, Avenue Therapeutics, Inc. (Nasdaq: ATXI) announced that it will effect a 1-for-75 reverse split of its issued and outstanding common stock. Avenue expects its common stock to begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the commencement of trading on April 26, 2024 with a new CUSIP number of 05360L403. The ticker symbol for the Company’s stock will remain “ATXI.” 

Risks Associated with Small Stock Offerings:  

• Lack of Information: Many small companies may not provide comprehensive financial disclosures or have limited operating histories.  

• Market Volatility: Small stocks can be more volatile than larger, established companies, leading to significant price fluctuations.  

• Liquidity Concerns: These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices.  

In addition to these risks, there are the risks associated with pharmaceutical and biotech investments. The research and development process for pharma companies often involves costly and lengthy testing trials that yield specific data. If the expected data or end points are not met, that could be bad news for investors. 

Broker Responsibilities and Investor Protections  

Broker dealers are required to conduct thorough due diligence on any investment they recommend and ensure that all recommendations are suitable for their clients. Firms that fail in this duty may be held liable for investor losses through FINRA arbitration claims.  

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.  

Recovery of Investment Losses  

If you have suffered investment losses in Avenue Therapeutics, you may have recovery options. The securities attorneys at The White Law Group offer free consultations and can be reached at 1-888-637-5510.  

About The White Law Group  

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.