Why Is Heart Test Laboratories (HSCS) Stock Down 21% Today?


  • Heart Test Laboratories (HSCS) stock is falling on Wednesday after it announced a secondary share offering.
  • The company notes that several shareholders are planning to sell HSCS shares.
  • It will only receive proceeds from some of these share sales.
HSCS Stock - Why Is Heart Test Laboratories (HSCS) Stock Down 21% Today?

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Heart Test Laboratories (NASDAQ:HSCS) stock is falling hard on Wednesday after the medical technology company announced a secondary offering for its shares.

Heart Test Laboratories notes that this is a resale of 34,684,859 shares of HSCS stock by a few shareholders.

Let’s break down the shares that are being sold and their holders below!

HSCS Stock Sale Details

  • Icahn School of Medicine at Mount Sinai is selling 4,854,853 shares issued on November 16, 2023.
  • This also includes 710,605 shares from pre-funded warrants issued at that same time.
  • Another 914,148 shares are included in this from warrants included in that purchase agreement.
  • 21,423,965 of these shares were issued to Lincoln Park Capital Fund, LLC, in a March 10, 2023 purchase agreement.
  • 3,656,288 shares are those issued to John Q. Adams in a note conversion agreement from Nov. 16, 2023.
  • 3,125,000 shares come from a note conversion letter agreement with Matthews Southwest Holdings, Inc. on Nov. 16, 2023.

Heart Test Laboratories notes that it won’t see any funds from part of these sales. Instead, it will only see money from warrant exercises and the shares sold by Lincoln Park.

HSCS stock is down 20.7% as of Wednesday morning.

Investors can find even more of the most recent stock market stories worth reading about down below!

We have all of the hottest stock market stories that investors will want to keep up with on Wednesday! That includes why Entravision Communications (NYSE:EVC) stock is down, our trade of the day, and the latest news moving Infobird (NASDAQ:IFBD) stock. You can read up on all of these matters at the following links!

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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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