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Why Is Augmedix (AUGX) Stock Down 27% Today?

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  • Augmedix (AUGX) stock is down on a public offering.
  • The company is selling 6.25 million shares for $4 each.
  • That’s well below the company’s prior closing price of $5.43 per share.
AUGX Stock - Why Is Augmedix (AUGX) Stock Down 27% Today?

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Augmedix (NASDAQ:AUGX) stock is falling on Thursday after the remote medical documentation and live support company announced details of a public share offering.

That offering has the company selling 6.25 million shares of AUGX stock at a price of $4 per share. Investors will note this is an upsized offer over the previously proposed 5.5 million shares.

Underwriters of the offering also have a 30-day option to acquire another 937,500 shares at the offering price. Evercore ISI and William Blair are joint bookrunning managers for the offering with B. Riley Securities acting as co-manager.

Augmedix is expecting gross proceeds from the offering to come in at $25 million. The company plans to use the proceeds “to fund increased investment in sales and marketing; for research and development and general and administrative costs as the company increases its scale; and for working capital, capital expenditures and general corporate purposes.”

How This Affects AUGX Stock Today

A public stock offering almost never goes well with investors. That’s due to the increase in shares diluting their current stakes in the company.

To go along with that, the offerings are often priced below market value. In this case, the $4 price tag for shares in the offering is a significant discount compared to prior closing price of $5.43 per share for AUGX stock.

AUGX stock is down 27.1% on Thursday morning as some 298,000 shares change hands. For comparison, its daily average trading volume is about 219,000 shares.

Investors will want to stick around for more of the latest market coverage today!

We have insight into all of the hottest stock market stories worth reading about on Thursday! That includes what’s moving shares of Volcon (NASDAQ:VLCN) stock, Flora Growth (NASDAQ:FLGC) stock and Bone Biologics (NASDAQ:BBLG) stock today. All of that news is ready to go at the links below!

More Stock Market News for Thursday

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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.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/why-is-augmedix-augx-stock-down-27-today/.

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