Why Is Aquestive Therapeutics (AQST) Stock Down 14% Today?


  • Aquestive Therapeutics (AQST) stock is falling on a public offering.
  • This has it selling 16,666,667 shares for $4.50 each.
  • The company expects $75 million in gross proceeds from this offering.
AQST Stock - Why Is Aquestive Therapeutics (AQST) Stock Down 14% Today?

Source: shutterstock.com/Champhei

Aquestive Therapeutics (NASDAQ:AQST) stock is falling on Wednesday after the pharmaceutical company revealed details of a public offering for its shares.

Aquestive Therapeutics is selling 16,666,667 shares of AQST stock for $4.50 each in this public offering. There’s also a 30-day option for underwriters to acquire an additional 2.5 million shares at that same price.

Aquestive Therapeutics is expecting $75 million in gross proceeds from the stock offering. The company will use these funds to continue the development and commercialization of its product pipeline.

Aquestive Therapeutics has several products in development. That includes Anaphylm Sublingual Film for severe life-threatening allergic reactions and Libervant Buccal Film for seizure clusters in epilepsy patients. The funds will also be used for general corporate purposes.

How This Affects AQST Stock

This public offering increases the total number of outstanding shares of AQST stock. That dilutes current shareholder’s stakes in the company. This is one reason why the shares are down today.

Another is the price of shares in the offering. The $4.50 offering price is a significant discount from the prior closing price of $5.34 per share. It makes sense the stock’s price would drop to closer match the offering price as a result.

AQST stock is down 14% as of Wednesday morning. However, shares were up 165.7% year-to-date when markets closed yesterday.

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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.

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