Cyclacel Pharmaceuticals (NASDAQ:CYCC) stock is rocketing higher on Tuesday after the clinical-stage biopharmaceutical company withdrew a proposed public offering.
A filing with the Securities and Exchange Commission (SEC) shows that Cyclacel Pharmaceuticals is withdrawing its proposed public offering filed in March. The company notes that its filing fees won’t be refunded but seeks to have them applied to future filings.
Here’s a portion of what the company said in its filing with the SEC withdrawing the offering:
“The Company has determined not to pursue, at this time, the public offering to which the Registration Statement relates. The Registration Statement has not been declared effective by the Commission and no securities have been issued or sold under the Registration Statement. Accordingly, withdrawal of the Registration Statement is consistent with the public interest and the protection of investors, as contemplated by paragraph (a) of Rule 477.”
What This Means for CYCC Stock
The withdrawal of this proposed public offering is good news for CYCC stockholders. It means the company won’t be increasing its total outstanding shares. That also means it won’t dilute the stakes of current investors in the company.
Additionally, investors don’t have to worry about this offering devaluing CYCC shares. That often happens as public offerings sell shares at a discounted price.
CYCC stock is up 46.3% as of Tuesday morning with more than 4 million shares traded. Its daily average trading volume is below that at roughly 109,000 shares.
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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.
