LifeStance Health (NASDAQ:LFST) stock is down on Wednesday after the mental health services company announced the pricing of a secondary offering for its shares.
LifeStance Health says that a group of stockholders are selling shares of LFST stock in this public offering. This has them pricing the company’s shares at $6.25 each. They will sell a total of 20 million shares in the offering.
In addition to this, the underwriters of the offering have a 30-day option to acquire another 3 million shares at this offering price. Morgan Stanley, Goldman Sachs & Co. LLC and TPG Capital BD, LLC are the lead bookrunning managers of the offering.
LifeStance Health notes that it won’t see any proceeds from this secondary offering. Instead, all of the profits will go to the selling shareholders. This is due to the company not offering any of these shares itself.
What This Means for LFST Stock
With this offering comes the sale of LFST shares without any benefit to LifeStance Health. On top of that, the offering price of $6.25 per share is well below the stock’s price closing price of $7.48 each. That helps explain why LFST stock is falling so hard on Wednesday.
LFST stock is down 19.8% as of Wednesday morning.
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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.
