Myomo (NYSEMKT:MYO) stock is dropping on Monday after the wearable medical robotics company priced a public share offering.
A press release from Myomo highlights details of its planned public offering. The company intends to offer up to 7,333,334 shares of MYO stock at a price of 60 cents per share. That will result in it raising $4.4 million in gross proceeds from the offering.
The stock offering launched on Friday and is expected to close on Tuesday. The initial pricing on the offering on Friday saw the company’s shares fall 10.1%, with some 664,00 shares traded. For the record, its daily average trading volume is about 397,000 shares.
Why This Matters for MYO Stock
Investors typically aren’t happy when a company announces a public stock offering. Oftentimes, that’s due to the offering increasing the total number of outstanding shares. Doing so dilutes the stakes of current stockholders in the company.
Another reason public stock offerings aren’t well received is the prices. In this case, the MYO stock price of 60 cents per share is below its closing price of 67 cents per share on Thursday. That has the new share of the company’s stock being sold for a discount compared to its public offering price.
MYO stock is down 12.5% as of Monday morning, with some 71,000 shares on the move.
Investors keeping an eye out for all of the biggest stock market stories today are in the right place!
We have all of the hottest stock market coverage traders need to know about on Monday! That includes what’s going on with shares of Rite Aid (NYSE:RAD) stock, LQR House (NASDAQ:LQR) stock, and Vahanna Tech Edge Acquisition I (NASDAQ:VHNA) stock today. All of that news is available at the following links!
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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.
