Cormedix (NASDAQ:CRMD) stock is falling hard on Thursday after the company priced a public offering of its shares.
That public offering has the company selling 7.5 million shares of CRMD stock at a price of $4 per share. This has the company expecting to raise gross proceeds of about $40 million from the company.
To go along with this, the company is selling pre-funded warrants for another 2,500,625 shares of CRMD stock. Likewise, underwriters have the option to acquire another 1,500,093 shares at the public offering price. RBC Capital Markets, Truist Securities, and JMP Securities are book-running managers for the offering.
What That Means for CRMD Stockholders
With this latest offering, investors in CRMD stock will see their stakes in the company diluted. That’s due to this increasing the total number of outstanding shares of the company’s stock.
In addition to that, the pricing of the public offering is below the company’s previous market value. Shares of CRMD closed on Wednesday at $5.07 per share, which explains why the stock is falling, with the public offering pricing shares at $4 each.
All of this news brings with it heavy trading of CRMD stock. That has some 662,000 shares changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 521,000 shares.
CRMD stock is down 23% as of Thursday 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.
