Why Is Hillstream BioPharma (HILS) Stock Down 57% Today?


  • Hillstream BioPharma (HILS) stock is falling on public offering news.
  • The company is selling 5.3 million shares of HILS stock for 50 cents each.
  • This has it expecting to raise $2.65 million from the offering.
HILS Stock - Why Is Hillstream BioPharma (HILS) Stock Down 57% Today?

Source: shutterstock.com/Michele Ursi

Hillstream BioPharma (NASDAQ:HILS) stock is taking a beating on Friday after the company revealed plans for a public offering of its shares.

Hillstream BioPharma is selling 5.3 million shares of HILS stock in this public offering. These shares are priced at 50 cents each, which has it expecting gross proceeds of $2.65 million from the public offering.

The company notes there’s also an option for underwriters to acquire an additional 795,000 shares. These are priced at the same 50 cents per share, and the offer is available for 45 days after the offering. ThinkEquity is the sole book-running manager for this offering.

What This Means for HILS Stock

The offering from Hillstream BioPharma increases the total number of outstanding shares of HILS stock. That means it also dilutes current shareholders’ stake in the company. This helps explain why the stock is down today.

In addition to that, investors don’t often react well to the pricing of public offerings. That’s due to them typically coming in lower than the stock’s prior closing price, which devalues the shares. For example, shares of HILS stock closed out Thursday at $1.09 per share.

HILS stock is down 56.9% as of Friday morning but is up 220% year-to-date as of Thursday’s close.

Investors looking for even more of the most recent stock market news will want to keep reading!

InvestorPlace offers up all of the hottest stock market news traders need to know about on Friday! A few examples include why shares of AGBA (NASDAQ:AGBA) and Top Financial (NASDAQ:TOP) stock are rising, as well as the biggest pre-market stock movers this morning. You can find out more on these matters at the links below!

More Friday 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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