The sell-off followed a brief period of intense optimism sparked by the company’s Monday morning announcement of a partnership with AI research lab Boltz. That collaboration, aimed at accelerating the discovery of cancer-fighting drug candidates, had driven the stock up from its Friday closing price of $5.08.

Under the terms of the new direct offering, Nexentis agreed to sell roughly 411,000 shares at just under $7.06 apiece, coupled with an equal number of warrants exercisable at the same price. With only 1 million shares currently outstanding according to FactSet, this issuance represents significant dilution for existing shareholders. The company expects to net approximately $2.9 million from the deal, which is scheduled to close this Wednesday.