Bio-Path (NASDAQ:BPTH) stock is sliding lower on Monday after the company announced a proposed public share offering.
Bio-Path has yet to reveal the major details of its planned public offering. That means we don’t know how many shares of BPTH stock will be included. Likewise, it’s unknown how much the company will sell the shares for.
What we do know is that Bio-Path mentions selling shares, as well as pre-funded shares and warrants in this stock offering. However, this doesn’t tell investors how much the company expects to generate in gross proceeds from the stock sale.
Considering this filing was made on Friday, investors will likely learn more about the sale plan in the coming days. Companies often price their public share offerings not too long after announcing them.
What This Means for BPTH Stock
If Bio-Path moves forward with the stock offering, it would increase the company’s total number of outstanding shares. That’s not something that often sits well with investors, which explains why shares of BPTH stock are falling this morning.
To go along with that, stock offerings are typically priced below market value. That’s another factor that’s weighing on the stock. While that hasn’t been confirmed for the BPTH stock offering, it’s something investors are likely keeping in mind while trading today.
BPTH stock is down 11.7% as of Monday morning.
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On the date of publication, William White did not hold (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.
