Longeveron (NASDAQ:LGVN) stock is rocketing higher on Monday after the clinical-stage biotechnology company revealed plans for a proposed public share offering.
Longeveron intends to offer up 2,461,538 shares of LGVN stock. These shares will also come with warrants for another 2,461,538 shares of the company’s stock.
Longeveron notes that the assumed combined price of shares and warrants in this offering will be $3.25 per share. This matches the closing price of the company’s stock on March 28. It doesn’t yet have an exercise price ready for the warrants in this offering.
Longeveron says that it intends to terminate this offering on May 15. However, the company also clarifies that it may choose to end the offering earlier.
What’s Behind the LGVN Stock Offering
Longeveron is offering up these shares following a reverse stock split late last month. This saw it consolidate shares on a 1-for-10 basis. That leaves the company with 1,034,283 outstanding shares after the reverse split.
Investors will note that this leaves Longeveron with plenty of room to issue more shares. The company is able to have as many as 100 million outstanding shares on the market. Its current amount only represents about 2.4% of that.
LGVN stock is up 82% as of Monday morning. That comes alongside 4.4 million shares traded, as compared to a daily average of 80,000 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.
