Virios Therapeutics (NASDAQ:VIRI) stock is falling on Monday after the development-stage biotechnology company announced the pricing of a public offering for shares.
Virios Therapeutics is selling 8.5 million shares of VIRI stock at a price of 20 cents per share. This has the company expecting gross proceeds of $1.7 million from this public offering.
Virios Therapeutics intends to use the funds from this offering for its IMC-2 Long-COVID Phase 2b study. The money will also be used for general corporate purposes. Investors will also note that the sole placement agent for the offering is Maxim Group LLC.
What This Means for VIRI Stock
A public stock offering increases the total number of VIRI shares on the market. Doing this dilutes the stakes of current shareholders in the company. That’s one reason why VIRI stock is down today.
The other has to do with the pricing of the offering. At 20 cents per share, this is a significant discount from its prior closing price of 35 cents. That’s another negative dragging down the price of the stock this morning.
VIRI stock is down 43.8% as of Monday morning. The stock was also down 39.4% year-to-date (YTD) when markets last closed.
Investors seeking out more of the latest stock market stories are in luck!
We have all of the hottest stock market news ready to go on Monday! A few examples include what’s happening with shares of GT Biopharma (NASDAQ:GTBP) stock, MultiMetaVerse (NASDAQ:MMV) stock and the biggest pre-market stock movers this morning. That news is good to go at the links below!
More Monday Stock Market News
- Why Is GT Biopharma (GTBP) Stock Up 143% Today?
- Why Is MultiMetaVerse (MMV) Stock Up 105% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
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On the date of publication, William White did not hold (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.
