Aligos Therapeutics (NASDAQ:ALGS) stock is falling on Monday after the clinical-stage biopharmaceutical company announced plans for a proposed public share offering.
According to a filing with the Securities and Exchange Commission (SEC), the selling stockholders are preparing to offer as many as 168,725,925 shares of ALGS stock. As these are being offered by selling shareholders, Aligos Therapeutics won’t see any money from the transactions.
The stocks being sold include 31,429,266 shares of outstanding stock, 81,054,686 shares issuable from outstanding pre-funded warrants, as well as 56,241,973 issuable from outstanding common warrants. The pricing of these transactions will vary as the selling stockholders will decide on the pricing of the stocks in private deals.
How This Affects ALGS Stock
Investors aren’t reacting well to the news of a secondary stock offering from these shareholders. That makes sense, as it’s likely to increase outstanding shares if the warrants are exercised. The pricing of deals could also devalue ALGS stock compared to its current price. Finally, these sales won’t even net Aligos Therapeutics any extra funds.
ALGS stock is down 5.5% as of Monday morning, with more than 3,000 shares changing hands. That’s still a ways off from its daily average trading volume of about 77,000 shares.
Investors looking for more of the most recent stock market stories are in the right place!
InvestorPlace is home to all of the hottest stock market coverage traders need for Monday! A few examples include why shares of Blue Star Foods (NASDAQ:BSFC) and Bruush Oral Care (NASDAQ:BRSH) stock are up today, as well as the biggest pre-market stock movers. All of that news is ready to go at the links below!
More Monday Stock Market News
- Why Is Blue Star Foods (BSFC) Stock Up 39% Today?
- Why Is Bruush Oral Care (BRSH) Stock Up 184% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.