Why Is BioVie (BIVI) Stock Down 41% Today?


  • BioVie (BIVI) stock is falling alongside a public offering of its shares.
  • The company is selling 21 million shares for $1 each.
  • This also includes warrants for another 10.5 million shares.
BIVI Stock - Why Is BioVie (BIVI) Stock Down 41% Today?

Source: shutterstock.com/Champhei

BioVie (NASDAQ:BIVI) stock is falling on Monday after the biopharmaceutical company revealed details for a public stock offering.

BioVie has priced its shares at $1 each in the public offering. Twenty-one million shares are being sold, and they come with warrants for another 10.5 million shares of BIVI stock. Investors will note the warrants have an exercise price of $1.50 each.

BioVie expects to raise $1 million in gross proceeds from the public offering. The company will use these funds for working capital and general corporate purposes. ThinkEquity is the sole placement agent for the offering.

How This Affects BIVI Stock

A public stock offering increases the total number of outstanding BIVI shares. That’s worth noting as it also dilutes the stakes of current investors in BioVie. That’s one reason the stock is falling this morning.

The public offering price of $1 per share is another sticking point for investors. It’s a significant discount over the stock’s prior closing price of $1.89 per share. The same holds true for the warrant exercise price.

BIVI stock is down 41.3% as of Monday morning after the shares experienced a 52.4% rally on Friday.

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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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