NRX Pharmaceuticals (NASDAQ:NRXP) stock is falling on Tuesday after the clinical-stage pharmaceutical company announced a proposed public offering for its shares.
We still don’t know the finer details of the public offering. That’s due to NRX Pharmaceuticals not yet setting a price for the shares or saying how many of them will be included in the underwritten public offering.
What we do know is that EF Hutton LLC is serving as the sole book-running manager for the public offering. NRX Pharmaceuticals also says that all shares sold in the offering will come directly from it.
Other details we know are the company’s plans for the net proceeds from the offering. It intends to use the money for working capital and general corporate purposes. NRX Pharmaceuticals may also use the funds to repay some of its outstanding debts.
What a Public Offering Means for NRXP Stock
This public offering would increase the total number of outstanding NRXP shares. That will also dilute the stakes of current shareholders. This is one of the reasons the stock is falling today.
Another concern is the price of the offering. While one hasn’t been announced yet, shares in public offerings are also normally discounted. That’s another likely reason for today’s NRXP decline.
NRXP stock is down 22.8% as of Tuesday morning.
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We have all of the hottest market coverage traders need to know about on Tuesday! That includes everything happening with Aaron’s (NYSE:AAN) stock, Rivian Automotive (NASDAQ:RIVN) stock and Infobird (NASDAQ:IFBD) stock 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.
