Lexaria Bioscience (NASDAQ:LEXX) stock is falling on Tuesday after the company revealed details about its public share offering.
According to a press release, the LEXX public stock offering will include 2,106,000 units with each one containing one share and one warrant to purchase a share. These units are priced at 95 cents each, which brings the total value of the offering to $2 million.
The warrants included in the public offer also have an exercise price of 95 cents each. They are immediately exercisable and will expire five years after being issued. The stock offering is expected to close on May 11.
What This Means for LEXX Stock
Lexaria Bioscience is issuing new shares of LEXX stock for this public offering. As such, that adds to the current number of outstanding shares of its stock. This also means that shareholders’ stake in the company is diluted. That helps explain why the company’s shares are down today.
In addition to that, the public offering pricing shares at 95 cents each is another blow to LEXX stock. That’s below its prior closing price of $1.03 per share. That devalues the stock in the eyes of investors and also gives reason for today’s drop in value.
Finally, heavy trading follows today’s public offering news. As of this writing, some 352,000 shares of the stock have changed hands. That’s already above its daily average trading volume of about 28,000 shares.
LEXX stock is down 27.4% as of Tuesday morning.
Investors keeping an eye out for all of the latest stock market news are in luck!
We’ve got all of the biggest stock market stories traders need to read about on Tuesday! That includes why shares of Ohmyhome (NASDAQ:OMH), Palantir (NYSE:PLTR), and Erytech Pharma (NASDAQ:ERYP) stock are moving today. You can find out more on these matters at the links below!
More Tuesday 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.