VolitionRX (NYSEMKT:VNRX) stock is taking a beating on Friday after the company revealed a proposed public offering for its shares.
The big news here is VolitionRX planning a public offering of VNRX stock. However, the company has only announced its intentions for the offering. It hasn’t revealed finer details, such as the price of the offering or how many shares will be included.
One thing we do know is that the company plans to offer an additional 15% of the total shares in the offering to its underwriter. Newbridge Securities Corporation will serve as the sole book-running manager of the offering.
Another detail that the company covers in the release has to with its plans for funds from the offering. VolitionRX intends to use the gross proceeds for “research and continued product development, clinical studies, product commercialization, working capital and other general corporate purposes.” That may also include strategic acquisitions.
Why VNRX Stock Is Falling
The fall of VNRX stock today makes sense as investors react to the public offering news. Shareholders typically aren’t fans of stock offerings for a couple of reasons. That includes the dilution of their stakes as new outstanding shares get introduced. Offerings are also often priced below market value, which is another negative for current shareholders.
VNRX stock is down 16.7% as of Friday morning.
Investors looking for more of the hottest stock market news today will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Friday! Among that is what has shares of Nogin (NASDAQ:NOGN) and Ibio (NYSEMKT:IBIO) stock rising, as well as the biggest pre-market stock movers this morning. We’ve got all that news ready to go at the links below!
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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.