Revelation Biosciences (NASDAQ:REVB) stock is falling on Thursday after the life sciences company announced pricing for a public offering of its shares.
Revelation Biosciences is selling 1.36 million shares of REVB stock combined with warrants for another 2.73 million shares. The offering price for these units is $4.53 each. The warrants also have an exercise price that matches that and will expire five years after being issued.
Revelation Biosciences is expecting gross proceeds of $6.2 million from the public offering. The company notes that it intends to use these funds to further the development of several of its product candidates. Any left over after that will be used for working capital and general corporate purposes.
What This Means for REVB Stock
A public offering increases the total number of REVB shares on the public market. Doing so also dilutes the stakes of current shareholders in the company. That helps explain why REVB stock is falling on Thursday as investors react to the news.
Adding to that is the offering price of $4.53 per share. This is a massive discount over the prior closing price of $8.80 per share for REVB. It makes sense that this decreased offering price would pull down the value of Revelation Biosciences’ shares today.
REVB stock is down 61.6% as of Thursday morning.
Investors who want more of the most recent stock market stories are in luck!
We have all of the hottest news traders need to know about on Thursday! A few examples include what’s happening with Kiora Pharmaceuticals (NASDAQ:KPRX), Peloton Interactive (NASDAQ:PTON) and Elevai Labs (NASDAQ:ELAB) stock today. All of that info is available at the following links!
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On the date of publication, William White did not hold (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.
