Intelligent Bio Solutions (NASDAQ:INBS) stock is falling hard on Friday after the medical technology company announced details of a public share offering.
With this news comes the pricing of the company’s shares in this offering. Intelligent Bio Solutions is selling 7,272,727 shares of INBS stock at a price of 55 cents. This has the company expecting to raise $4 million in gross proceeds from the offering.
To go along with this stock offering, each of the shares included in this offering comes combined with warrants for more INBS stock. That includes Series E Warrants that expire in one and a half years and Series F Warrants that expire in five and a half years. Each of these can be redeemed for another share of INBS.
Finally, underwriters of the public offering also have a 45-day option to acquire another 1,090,909 shares at the offering price. These shares also come with the same Series E and Series F warrants. Ladenburg Thalmann & Co. Inc. is the sole book-running manager for this offering.
What This Means for INBS Stock
A public stock offering means that Intelligent Bio Solutions is increasing its total number of outstanding shares. Doing so dilutes the stakes of current shareholders, which helps explain why the stock is down today.
In addition to that, the price of the shares in this offering is a deep discount from the prior closing price for INBS. When the stock markets closed on Friday, INBS stock was trading for $1.05 per share, as compared to the offering’s price of 55 cents per share.
INBS stock is down 52.4% as of Monday 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.
