Inhibikase Therapeutics (NASDAQ:IKT) stock is falling on Thursday after the company announced a registered direct offering and private placement.
First off, the registered direct offers up 6.74 million shares of IKT stock for a price of 86 cents each. Next, the private placement includes 4.88 million shares priced the same as in the direct offering.
To go along with these offerings, Inhibikase has approved the issuing of 11.62 million warrants to acquire IKT stock. These warrants have an exercise price of 75 cents per share, can be exercised immediately and expire in five years.
Inhibikase Therapeutics is expecting gross proceeds from these two offerings to come in at $10 million. It will use this money for general corporate purposes, such as funding clinical trials, product candidate development and more.
What This Means for IKT Stock
Traders will note that IKT stock is seeing heavy trading volume this morning. Some 351,000 shares of the stock have already changed hands. This is already above the company’s daily average trading volume of about 256,000 shares.
Today’s drop in price makes sense as investors sell shares. The offerings will increase the outstanding shares of IKT stock, diluting current shareholders’ stakes in the company. That’s not something investors typically react well to.
IKT stock is down 10.5% as of Thursday morning.
Investors looking for all of the latest stock market news will want to stick around!
InvestorPlace is ready to go with all of the most recent stock coverage traders need for Thursday! Among that is what’s moving shares of Nio (NYSE:NIO), Buzzfeed (NASDAQ:BZFD) and Ocuphire Pharma (NASDAQ:OCUP) stock this morning. Investors can learn all about these topics at the links below!
More Thursday Stock Market News
- Why Is NIO Stock Up 5% Today?
- Why Is BuzzFeed (NASDAQ:BZFD) Stock Up 35% Today?
- Why Is Ocuphire Pharma (OCUP) Stock Down 20% Today?
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.