Why Is Tivic Health Systems (TIVC) Stock Down 51% Today


  • Tivic Health Systems (TIVC) stock is falling alongside a public stock offering.
  • The company is pricing 20 million shares at 25 cents each.
  • TIVC stock’s prior closing price was 50 cents per share.
Brown glass pill bottle on its side showing white pills inside, with other pill bottles behind it representing TIVC stock.

Source: shutterstock.com/Champhei

Tivic Health Systems (NASDAQ:TIVC) stock is falling on Thursday after revealing pricing for a public stock offering.

The company has priced shares of TIVC stock at 25 cents per share. It expects to raise $5 million from the offering. Tivic Health Systems intends to use this money for the “sales expansion” of its first commercial product, ClearUP.

Tivic is offering up 20 million shares of TIVC stock in the public offering. There’s also a 45-day option for underwriters of the offering to acquire an additional 3 million shares.

What This Means for TIVC Stock

A public stock offering increases the total outstanding amount of TIVC shares. With that comes a decrease to current shareholders’ stake in the company. That’s not something often received well by investors.

Adding to that, public stock offerings are often priced below market value. That’s the case this time; the 25 cent offering price is half of the 50 cent closing price TIVC stock saw yesterday. Yet again, investors typically aren’t happy about this as it devalues their shares.

Today’s news also brings with it heavy trading of TIVC stock. As of this writing, more than 1 million shares have been traded. For comparison, the company’s daily average trading volume is closer to 88,000 shares.

TIVC stock is down 52% in Thursday pre-market trading.

Investors can keep reading for more of the latest stock market news today.

We’ve got all of the most recent stock coverage traders need to know about on Thursday! A few examples include why shares of Cardiovascular Systems (NASDAQ:CSII) and Hempacco (NASDAQ:HPCO) stock are rising and the biggest pre-market stock movers this morning. All of that news is ready to go below!

More Thursday 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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