Sellas Life Sciences (NASDAQ:SLS) stock is taking a beating on Thursday after the late-stage clinical biopharmaceutical company announced a proposed public share offering.
Sellas Life Sciences has yet to release the finer details of the public offering. That means we don’t yet know what it prices shares at or how many shares will be offered in it. What we do know is it intends to offer by shares and warrants to acquire additional shares of SLS stock.
To go along with that, the company has said that A.G.P./Alliance Global Partners is serving as the sole placement agent for the proposed public offering. The company also notes that it intends to use funds from the offering to fund ongoing operations, which include clinical development of existing product candidates.
What This Means for SLS Stock
A public stock offering would increase the total number of outstanding shares of SLS stock. Doing so would dilute current shareholders’ stakes in the company. With that in mind, it makes sense that SLS would be falling in price alongside the news.
Additionally, public offerings are often priced at a discount to the stock’s trading volume. While we don’t know the price of this offering, investors may be bracing for it to be well below the company’s prior closing price of about 91 cents.
SLS stock is down 24.9% as of Thursday morning.
There are even more stock market stories traders are going to want to read about at the following links!
We have all of the hottest stock market news ready to go on Thursday! A few examples include what’s sending shares of Omega Therapeutics (NASDAQ:OMGA) and Jeffs Brands (NASDAQ:JFBR) stock higher as well as the biggest pre-market stock movers this morning. You can catch up on all of these topics at the following links!
More Thursday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
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.
