SenesTech (NASDAQ:SNES) stock is dropping on Tuesday after the animal fertility control company priced a public offering of its shares.
SenesTech is selling 3.84 million shares of its common stock for $1.30 each. Investors will also note that each of the shares in this offering comes with Series D and Series E warrants. Each of these warrants is able to be exercised for $1.30 for another share of SNES stock.
SenesTech is expecting gross proceeds of $5 million from this stock offering. The company notes that it intends to use the money secured from this offering for general corporate purposes.
How This Affects SNES Stock
It’s common for a stock to fall once a public offering of the shares has been announced. That makes sense as the offering increases the total number of outstanding shares available. Doing so also dilutes the investments of current shareholders.
Adding to that is the low offering price of $1.30 per share. That’s a significant discount over the stock’s prior closing price of $1.85 per share. It makes sense the stock would at least fall to match that price, if not head even lower.
SNES stock is down 36.2% as of Tuesday morning.
Investors seeking out more of the most recent stock market stories will want to keep reading!
We’re offering up insight into all of the hottest stock market news that traders need to know about on Tuesday! That includes everything happening with Tharimmune (NASDAQ:THAR) stock, ESGL Holdings (NASDAQ:ESGL) stock and RiskOn International (NASDAQ:ROI) stock today. You can catch up on these matters at the links below!
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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.
