Marpai (NASDAQ:MRAI) stock is taking a beating on Monday after the company announced a proposed public offering for its shares.
Marpai announced the proposed public offering after markets closed on Friday. It followed that up with the pricing for the public offering before markets opened this morning.
That public offering has the company intending to sell 7.4 million shares of MRAI stock at a price of $1 per share. This has it expecting to raise $7.4 million in gross proceeds from the stock offering before discounts and expenses.
Marpai also already has plans for the funds from the public offering. The company will use roughly 35% of the money generated from this offering to pay down the debt it has from its acquisition of Maestro Health. The rest will be used for general corporate purposes.
What This Means for MRAI Stock
Shares are falling today with a negative reaction to the MRAI stock offering. That makes sense as investors don’t like seeing the stock devalued from its prior closing price of $1.87 per share. They also don’t appreciate new shares diluting their stakes in the company.
Shares of MRAI stock are also seeing strong trading with some 1.22 million on the move as of this writing. That’s quickly closing in on its daily average trading volume of about 1.25 million shares.
MRAI stock is down 39.6% as of Monday morning.
There’s more stock market news worth reading about below!
InvestorPlace is home to all of the hottest stock market news for Monday morning! A few examples include why shares of Prometheus Biosciences (NASDAQ:RXDX) and Satsuma Pharmaceuticals (NASDAQ:STSA) stock are up, and the biggest pre-market stock movers this morning. You can find all of that at the following links!
More Monday Stock Market News
- Why Is Prometheus Biosciences (RXDX) Stock Up 70% Today?
- Why Is Satsuma Pharmaceuticals (STSA) Stock Up 144% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
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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.
