ZyVersa Therapeutics (NASDAQ:ZVSA) stock is sliding lower on Thursday after the clinical-stage biopharmaceutical company priced a public share offering.
ZyVersa Therapeutics is offering 4 million shares of ZVSA stock at a price of $1.25 each. Investors will also note that each of these shares comes with a Series A and Series B warrant for the stock. That’s enough for another 8 million shares of ZVSA. The warrants have an exercise price that matches the offering price.
ZyVersa Therapeutics is expecting to raise $5 million from the public offering of ZVSA stock. It says this money will be used for working capital and other general corporate purposes.
What This Means for ZVSA Stock
With this stock offering, ZyVersa is increasing the total number of shares outstanding. Doing so will dilute the current stakes of investors in the company. That’s one reason why shares are falling today.
The other likely reason shares are falling today has to do with the price of the public offering. At $1.25 per share, it’s a significant discount over the stock’s prior closing price of $2.14 per share. Investors don’t seem pleased about that pricing.
ZVSA stock is seeing heavy trading on Thursday alongside the public offering. This has more than 1 million shares changing hands. That’s already above the company’s daily average trading volume of about 391,000 shares.
ZVSA stock is down 43.5% as of Thursday morning.
There are more stock market stories traders are going to want to know about below!
We’re offering up all of the latest stock market coverage traders need to know about on Thursday! That includes what’s going on with shares of Troika Media Group (NASDAQ:TRKA) stock, Altisource Asset Management (NYSEMKT:AAMC) stock and Hempacco (NASDAQ:HPCO) stock today. You can catch up on these matters at the following links!
More Stock Market News for Thursday
- Why Is Troika Media Group (TRKA) Stock Down 77% Today?
- Why Is Altisource Asset Management (AAMC) Stock Up 24% Today?
- Why Is Hempacco (HPCO) Stock Up 56% Today?
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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.
