Why Is Aligos Therapeutics (ALGS) Stock Down 5% Today?


  • Aligos Therapeutics (ALGS) stock is falling on share offering news.
  • A secondary offering has shareholders selling up to 168,725,925 shares.
  • Aligos Therapeutics won’t see any money from these sales.
ALGS Stock - Why Is Aligos Therapeutics (ALGS) Stock Down 5% Today?

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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.

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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.

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