Panbela Therapeutics (NASDAQ:PBLA) stock is falling on Monday after the clinical-stage biopharmaceutical company revealed the pricing of a public offering for its shares.
Panbela Therapeutics is selling 4,375,000 shares of its common stock for $2.06 each. That has it expecting gross proceeds of $9 million from the stock offering.
To go along with this, each share will come with two class warrants. These will allow holders to purchase another 8.75 million shares of PBLA stock. The warrants have an exercise price matching the public offering and expire five years after being issued.
Panbela Therapeutics says the funds from this offering will fuel its business. It will use the money for “clinical development of its product candidates, working capital, business development and other general corporate purposes.” Some of the funds may also be used to reduce its debt.
How This Affects PBLA Stock
A public stock offering increases the total number of outstanding shares of a stock. That means that current investors will see their stakes in Panbela Therapeutics diluted. That helps explain why the stock is down today.
On that same note, the price of the public offering may not be helping shares today. The $2.06 pricing is a significant discount compared to the stock’s price closing price of $4.27 per share. With that in mind, it makes sense that PBLA shares would fall close to that price.
PBLA stock is down 63.2% as of Monday morning.
Investors searching for more of the latest stock market stories will want to stick around!
We have all of the hottest stock market news ready to go on Monday! A few examples include why shares of Revelation Biosciences (NASDAQ:REVB) and OneMedNet (NASDAQ:ONMD) stock are up today, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
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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.
