ImmunoPrecise Antibodies (NASDAQ:IPA) stock is falling hard on Wednesday after the biotherapeutic company priced its shares in a public offering.
This has ImmunoPrecise Antibodies offering 1.1 million shares of IPA stock for $1 per share. Underwriters of the offering also have a 30-day option to acquire another 165,000 shares at the $1 price. The Benchmark Company is the sole book-running manager for the offering.
ImmunoPrecise Antibodies notes that gross proceeds from the public share offering will be $1.1 million. It intends to use these funds for research and development, capital expenditures, working capital and general corporate purposes.
What This Means for IPA Stockholders
The offering of IPA shares will increase the total number outstanding. Doing so dilutes current shareholders’ stakes in the company. That’s one reason the stock is down today.
Another is the offering price of $1 per share for IPA stock. That’s a major discount over its prior closing price of $1.54 per share. With that discount, it makes sense that IPA shares would fall this morning.
IPA stock is down 39% as of Wednesday morning.
Investors seeking out even more of the latest stock market stories are in the right place!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! A few examples include why shares of Clean Earth Acquisitions (NASDAQ:CLIN) and MicroAlgo (NASDAQ:MLGO) stock are up today, as well as the biggest pre-market stock movers this morning. All of that is ready to go at the following links!
More Wednesday Stock Market News
- Why Is Clean Earth Acquisitions (CLIN) Stock Up 30% Today?
- Why Is MicroAlgo (MLGO) Stock Up 55% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
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.
