GRI Bio (NASDAQ:GRI) stock is taking a beating on Friday as investors in GRI react to the pricing of a public offering for the biotechnology company’s shares.
According to a press release from GRI Bio, this public offering includes 5 million shares of GRI stock priced at $1.10 each. This should see the offering generate gross proceeds of $5.5 million. GRI Bio will use these funds for working capital and other general corporate purposes.
The GRI shares each come with one Series B-1 Warrant and Series B-2 Warrant. Each of these warrants can be exercised for $1.10 and grant the holder an additional share of GRI. They are both immediately exercisable, and the Series B-1 warrants expire in five years while the Series B-2 Warrants expire in 18 months.
What This Means for GRI Stock
A public offering increases the total number of GRI shares available on the public market. Doing this also dilutes the stake of current holders of GRI stock. That’s one of the reasons the stock is sliding lower on Friday.
The price of the shares in the offering is another reason for GRI stock to fall on Friday. The $1.10 public offering price is well below the company’s prior closing price of $1.95 per share. It makes sense this discount would have a negative effect on GRI shares today.
GRI stock is down 20.5% as of Friday morning.
Investors looking for all of the latest stock market stories will want to stick around!
We have all of the hottest stock market news that traders need to know about on Friday! A few examples include why shares of TruGolf (NASDAQ:TRUG) stock, Biofrontera (NASDAQ:BFRI) stock and Exxon Mobil (NYSE:XOM) stock are moving today. You can read up on these matters at the following links!
More Friday Stock Market News
- Why Is TruGolf (TRUG) Stock Up 35% Today?
- Why Is Biofrontera (BFRI) Stock Down Today?
- XOM Stock: Lower Oil Prices Are Dragging Exxon Down
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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.
