LogicMark (NASDAQ:LGMK) stock is falling on Tuesday after the medical device company priced a $5.2 million public offering of its shares.
Specifically, the LGMK stock offering includes 10.58 million units and 3.44 million pre-funded units. The pricing of the offering values each unit at $0.371.
In the case of the normal units, they include one share of LGMK stock as well as a warrant to “purchase one and one-half shares of common stock.” Those warrants are immediately exercisable for $0.371 and expire after five years.
When it comes to the pre-funded units, they also include one share of LGMK stock and a warrant to purchase one and one-half shares. These units cost $0.001 less than the other units and the warrant in them is also immediately exercisable for $0.371. These warrants also expire after five years.
Why This Has LGMK Stock Down
Investors typically don’t react well to a public stock offering for a couple of reasons. First, it reduces their stake in a company as outstanding shares increase. Second, the units are typically priced below the stock’s market value, which devalues their shares.
As a result, heavy trading is pulling LGMK stock down on Tuesday. This has some 2 million shares changing hands. That’s well above the daily average trading volume of 133,000 shares.
LGMK stock is down 36% as of Tuesday morning.
Investors seeking out more of the latest stock market news will want to stick around!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Tuesday! A few examples include what’s happening with shares of Verb Technology (NASDAQ:VERB), Novo Integrated Sciences (NASDAQ:NVOS) and Axcella Health (NASDAQ:AXLA) stock today. You can find out more on these matters at the links below!
More Tuesday Stock Market News
- Why Is Verb Technology (VERB) Stock Down 30% Today?
- Why Is Novo Integrated Sciences (NVOS) Stock Up 27% Today?
- Why Is Axcella Health (AXLA) Stock Up 66% 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.