Azitra (NYSEMKT:AZTR) stock is falling on Wednesday after the pre-clinical biopharmaceutical company announced details for a public share offering.
Azitra is selling 16,667,000 shares of AZTR stock for 30 cents per share. That has the company expecting gross proceeds of $5 million from the stock offering.
In addition to that, underwriters have a 45-day option to acquire another 2.5 million shares of AZTR stock at the public offering price. ThinkEquity is the sole book-running manager for the public offering.
Azitra also reveals what it plans to do with the funds raised through this public offering. The company says it will use this money for clinical trials and product development, research and development, clinical manufacturing, working capital and other general corporate purposes.
What This Means for AZTR Stock
A public stock offering increases the total number of AZTR shares available on the market. Doing this also dilutes the stakes of current shareholders in the company. That’s one reason why the stock is falling on Wednesday.
To go along with that, the pricing of AZTR stock in the offering is a significant discount over its prior closing price. AZTR shares closed out Tuesday at 87 cents each. This is another reason why the company’s shares are sliding lower this morning.
All of this news also brings heavy trading to AZTR stock today. That has more than 1.5 million shares changing hands as of this writing. This is already well above its daily average trading volume of about 39,000 shares.
AZTR stock is down 69.5% as of Wednesday morning.
Investors looking for more of the latest stock market stories are in luck!
We have all of the hottest market news traders need to know about on Wednesday! A few examples include what’s going on with shares of Earlyworks (NASDAQ:ELWS) and Brera (NASDAQ:BREA) stock today as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
More Wednesday Stock Market News
- Why Is Earlyworks (ELWS) Stock Up 340% Today?
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
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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.
