GRI Bio (NASDAQ:GRI) stock is falling on Wednesday after the clinical-stage biopharmaceutical company announced a proposed public offering for its shares.
GRI Bio plans to offer up to 2,238,806 shares of GRI stock. Each share comes with one Series C-1 warrant and one Series C-2 warrant, which can be exercised for another share of GRI.
GRI Bio doesn’t have a firm price ready for its public offering just yet. Instead, it’s operating at an assumed price of $2.68 per share, which is also the price it has set for exercising its warrants.
GRI Bio also notes that the Series C-1 warrants will expire five years after being issued. The Series C-2 warrants are set to expire 18 months after being issued. The company is also offering up to 2,238,806 pre-funded warrants for investors who would see their stakes surpass 4.99% if they bought more shares.
What This Means for GRI Stock
A public offering increases the total number of outstanding shares on the market. At the same time, that dilutes the stakes of current shareholders in the company. That’s one reason why GRI stock is down today.
On top of that, public offerings are typically priced below the stock’s current value. This discount usually affects the stock’s trading price. While the company hasn’t priced shares in this offering yet, investors are still expecting a discount.
GRI stock is down 29.3% as of Wednesday morning.
Investors will want to keep reading for all of the hottest stock market news today!
We have all of the latest stock market stories available on Wednesday! A few examples include why shares of Anew Medical (NASDAQ:WENA) and Syntec Optics (NASDAQ:OPTX) stock are up, as well as the biggest pre-market stock movers this morning. All of this info is ready at the following links!
More Wednesday Stock Market News
- Why Is Anew Medical (WENA) Stock Up 144% Today?
- Why Is Syntec Optics (OPTX) Stock Up 186% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
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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.
