Ibio (NYSEMKT:IBIO) stock is falling hard on Tuesday after the biotechnology company announced the pricing of a public share offering.
That offering has the company selling 2.25 million shares of IBIO stock for $2 each. Each share in this offering comes with a Series C and Series D warrant to purchase additional shares of the stock. Each of these warrants has an exercise price of $2.
Investors will note that iBio expects to raise $4.5 million in gross proceeds from this public offering. The company will use these funds for working capital and general corporate purposes. It may also use the money to invest in or acquire other businesses and technologies.
What This Means for IBIO Stock
A public offering increases the total number of outstanding shares for a stock. That isn’t often received well by investors due to its diluting their stakes in the company.
On that same note, the public offering price of $2 per share is below the prior closing price of $2.70 per share for IBIO stock. That’s a significant discount that helps explain why the company’s shares are falling today.
IBIO stock is down 41.1% as of Tuesday morning, with some 800,000 shares traded. For comparison, its daily average trading volume is around 34,000 shares.
Investors who are looking for all of the latest stock market stories are in luck!
We have the hottest stock market news that investors need to know about on Tuesday! A few examples include why shares of Meiwu Technology (NASDAQ:WNW) and Volato (NYSEMKT:SOAR) stock are up, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
More Tuesday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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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.
