Why Is Allarity Therapeutics (ALLR) Stock Down 22% Today?


  • Allarity Therapeutics (ALLR) stock is falling on public offering news.
  • The company is selling $20 million worth of shares and warrants.
  • These are priced at $1.44 per share.
ALLR Stock - Why Is Allarity Therapeutics (ALLR) Stock Down 22% Today?

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Allarity Therapeutics (NASDAQ:ALLR) stock is falling hard on Wednesday after the clinical-stage pharmaceutical company launched a public offering.

That public offering has the company selling up to $20 million in shares, as well as warrants to purchase its stock. Allarity Therapeutics is selling the shares for $1.44, and each of them comes with a warrant for one share of ALLR stock.

The company notes the exercise price of the warrants is also $1.44 per share. These warrants are exercisable immediately upon being issued and will expire five years after they are sent to investors.

To go along with this, Allarity Therapeutics is offering pre-funded warrants instead of shares to certain investors. This would be for those with stakes in the company that would surpass 4.99% or 9.99% if they purchased more shares.

Why Are ALLR Stock Investors Upset?

It’s worth keeping in mind that investors typically don’t react well to public stock offerings. That’s due to them often devaluing the company’s stock or diluting shareholders’ current stake in the company.

With the stock offering news comes heavy trading of ALLR shares. As of this writing, more than 3.5  million shares of the stock have changed hands. That’s already above its daily average trading volume of about 1.8 million shares.

ALLR stock is down 21.5% during pre-market trading on Wednesday!

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

We’ve got all of the most recent stock coverage traders need to know about on Wednesday! A few examples include why shares of Bed Bath & Beyond (NASDAQ:BBBY) and Clearmind Medicine (NASDAQ:CMND) stock are up, as well as the biggest pre-market stock movers this morning. You can find out more on these matters at the following links!

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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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