Iovance Biotherapeutics (NASDAQ:IOVA) stock is sliding lower on Tuesday after the company announced details of a public share offering.
According to a press release, Iovance Biotherapeutics is selling 20 million shares of IOVA stock at a price of $7.50 per share. This has the company expecting gross proceeds of about $150 million from the offering.
To go along with that, there’s a 30-day option for underwriters to acquire up to 3 million shares of IOVA stock at the offering price. Goldman Sachs & Co. LLC and Jefferies LLC are serving as the joint lead book-running managers for the stock offering.
Iovance Biotherapeutics already has plans for how it will spend the money raised from the stock offering. The company intends to use the funds to fuel its potential commercial launch of Lifileucel, prepare the Iovance Cell Therapy Center, support its manufacturing facility in Philadelphia, and aid other ongoing clinical programs, as well as for general corporate purposes.
What This Means for IOVA Stock
With this stock offering, Iovance Biotherapeutics is increasing the total number of outstanding shares of IOVA stock. That explains why the stock is down today, as it dilutes current shareholders’ stakes. Additionally, the price of $7.50 per share is below its prior closing price of $8.79 per share.
IOVA stock has seen some 4.4 million shares change hands as of this writing. That’s closing in on its daily average trading volume of about 5.4 million shares. With that movement comes a 9.8% drop in IOVA stock on Tuesday morning.
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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.
