Elevation Oncology (NASDAQ:ELEV) stock is taking a beating on Friday after the healthcare company announced a public stock offering.
That public offering of ELEV stock has the company selling 17,810,000 shares at a price of $2.25 each. Each of these stocks also comes with a warrant to purchase another share. The exercise price of these warrants is also $2.25. There are also pre-funded warrants available for another 4,440,000 shares.
Elevation Oncology is expecting this public offering to close on June 13, 2023, and will raise $50 million from it. It intends to use these funds for general corporate purposes, as well as for the development of EO-3021.
EO-3021 is Elevation Oncology’s lead product candidate currently in the clinical trial phase. It is an antibody drug conjugate () designed to “selectively deliver a cytotoxic payload directly to cancer cells expressing Claudin 18.2.”
How This Affects ELEV Stock
Elevation Oncology’s offering of shares increases the total outstanding stock available on the market. Doing so dilutes the current investments of shareholders, while also devaluing the stock compared to its prior close. These are two of the main reasons the stock is down today on the offering news.
ELEV stock is down 25.5% as of Friday as some 641,000 shares change hands. The company’s daily average trading volume is about 2.1 million shares.
Investors seeking out more of the most recent stock market news will want to keep reading!
InvestorPlace offers up all of the biggest stock market stories worth reading about on Friday! A few examples of our coverage include why shares of Advanced Health Intelligence (NASDAQ:AHI) and WeTrade (NASDAQ:WETG) stock are up today, as well as the biggest pre-market stock movers this morning. You can find all of that news at the following links.
More Friday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
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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.