MDxHealth (NASDAQ:MDXH) stock is falling on Friday after the healthcare company revealed plans for a proposed public stock offering.
With this offering, MDxHealth is seeking to sell $40 million of its American Depositary Shares (ADSs) through the Nasdaq Capital Market. Each ADS represents 10 shares of the company’s common stock.
MDxHealth doesn’t have all the details of its stock offering ironed out just yet. The press release includes no price for the public stock offering and doesn’t specify when it will take place. However, the company does intend to sell additional shares to underwriters.
What This Means for MDXH Stock
A public stock offering will see MDxHealth increase its total number of outstanding shares. That also dilutes the current stakes of shareholders. This explains why shares of MDXH stock are falling today.
Also affecting the stock price are investors wary about the offering price. While one has yet to be announced, public offerings typically price shares below their market value. That’s also responsible for dropping the price of the stock.
MDXH stock is seeing heavy trading today as investors sell shares on the offering news. As of this writing, some 195,000 shares have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 2,000 shares.
MDXH stock is down 40.3% as of Friday morning.
There’s even more stock market news traders will want to know about below!
We’ve got all of the latest stock coverage traders need to know about on Friday! That includes what’s moving shares of Edible Garden (NASDAQ:EDBL), Genetic Technologies (NASDAQ:GENE) and Reshape Lifesciences (NASDAQ:RSLS) stock today. You can read up on that at the following links!
More Friday Stock Market News
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On the date of publication, William White did not have (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.
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