Why Is Intelligent Bio Solutions (INBS) Stock Down 48% Today?


  • Intelligent Bio Solutions (INBS) stock is falling alongside a public offering.
  • The company priced shares of its stock at $3.90 each.
  • This has it expecting to raise $2.2 million from the offering.
INBS Stock - Why Is Intelligent Bio Solutions (INBS) Stock Down 48% Today?

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Intelligent Bio Solutions (NASDAQ:INBS) stock is taking a beating on Wednesday after the company announced a proposed public stock offering.

The company announced that offering yesterday and then released details of the offering early this morning. The company expects to raise $2.2 million from the planned public stock offering.

That public offering will see the company offer up 569,560 shares of INBS stock alongside warrants to purchase another 170,868 shares. The offer prices shares of Intelligent Bio Solutions stock at $3.90 each. The warrants also have the same exercise price as the stock offering.

To go along with this, Ladenburg Thalmann & Co., the sole book-running manager of the offering, can acquire extra shares. It has a purchase right to buy another 85,430 shares and warrants for 25,629 shares of INBS stock up to 45 days after the offering.

What This Means for INBS Stock

News of a public stock offering often results in the price of a stock falling. That makes sense as traders react to the news that their stakes in the company will be diluted. The offerings are also typically below market value, which also pulls shares lower.

Today’s news brings with it volatility, which makes sense considering INBS stock’s low price of $3.14 per share. Combined with its market capitalization of $5.433 million, this has the company in penny stock territory.

INBS stock is down 47.7% as of Wednesday morning.

There’s more market stock traders will want to know about below!

InvestorPlace is ready to go with all the latest stock market stories for Wednesday! That includes why shares of Fresh Tracks Therapeutics (NASDAQ:FRTX) and Veon (NASDAQ:VEON) stock are gaining, as well as the biggest pre-market stock movers this morning. We’ve got all that news at the following links!

More Wednesday 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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