Theratechnologies (NASDAQ:THTX) stock is dropping on Thursday after the biopharmaceutical company announced a proposed public share offering.
Theratechnologies is selling 12.5 million shares of THTX stock at a price of $1 per share. The company is expecting gross proceeds from the stock offering to come in at $12.5 million
The offering also allows underwriters 30 days to acquire another 1.87 million shares at that offering price. Cantor Fitzgerald & Co. is serving as the sole bookrunner for the public offering.
THTX Stock Private Placement
At the same time of this public offering, Theratechnologies has entered into an agreement for a private placement. This covers 9.11 million shares of THTX stock and 3.38 million fully-funded, non-voting subscription receipts. Those receipts can be exchanged for THTX stock on a one-for-one basis.
Investissement Québec is the company buying the shares in the private placement. It also comes with a rights deal allowing the investor to nominate one director to the Theratechnologies board so long as it has a more than 50% stake in the company.
Investors aren’t happy about these announcements, as they dilute their current stakes in the company. Additionally, the $1 price in the public offering is a discount over the prior closing price of $1.28 per share for THTX.
As a result, shares of THTX stock are down 21.9% as of Thursday morning.
Investors looking for more of the most recent stock market news will want to keep reading!
We have all of the biggest stock market stories that traders need to know about on Thursday! That includes what’s happening with shares of Align Tech (NASDAQ:ALGN) stock, NextPlay Technologies (NASDAQ:NXTP) stock and Appreciate (NASDAQ:SFR) stock. You can find out more on these matters at the links below!
More Stock Market News for Thursday
- Why Is Align Technology (ALGN) Stock Down 23% Today?
- Why Is NextPlay Technologies (NXTP) Stock Up 53% Today?
- Why Is Appreciate (SFR) Stock Up 77% Today?
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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.
