Why Is SELLAS Life Sciences (SLS) Stock Down 38% Today?

  • SELLAS Life Sciences (SLS) stock is dropping after announcing a proposed public offering.
  • The company did not reveal many details about the offering.
  • It did say Cantor Fitzgerald & Co. is managing the offering, however.
SLS Stock. Biotechnology stocks, biomedical stocks

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SELLAS Life Sciences (NASDAQ:SLS) stock is falling on Friday after the late-stage clinical biopharmaceutical company announced a proposed public offering.

According to a press release, SELLAS Life Sciences intends to offer up shares of SLS stock, as well as warrants to purchase shares of the stock. The company notes that all securities in the offering will be sold by the company.

SELLAS also notes that Cantor Fitzgerald & Co. is serving as the sole book-running manager for the offering. Outside of that, there’s not much else in the way of details for investors to latch onto just yet.

That includes SELLAS Life Sciences not announcing the price of the securities in the offering. The company also doesn’t say how many securities it intends to offer, or what it expects gross proceeds to be.

Why This Has SLS Stock Down

News of a public offering often drops the price of a stock for a couple of reasons. That includes investors selling shares because the offering would dilute their stakes. These offerings are also typically below market value, which further weighs on a stock’s price.

SLS stock has already moved almost 136,000 shares as of this writing. If that continues, the company should surpass its daily average trading volume of about 167,000 shares. Also, the company’s stock is down 37.9% as of Friday morning.

There’s even more stock market news traders need to know about on Friday!

Luckily, we’ve got all that news ready to go with our latest coverage of the stock market. A few examples include what has shares of Bridger Aerospace (NASDAQ:BAER) and Cingulate (NASDAQ:CING) stock rising, as well as the biggest pre-market stock movers this morning. We’ve got all that news covered at the following links!

More Friday Stock Market News

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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.

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