Tharimmune (NASDAQ:THAR) stock is falling on Tuesday after the clinical-stage biotechnology company announced a public offering for its shares.
That public offering has Tharimmune selling 10 million shares of THAR stock. These shares are being sold for $1 each. Underwriters also have a 45-day option to acquire another 1.5 million shares at the offering price. ThinkEquity is the sole book-running manager for the offering.
This public offering of Tharimmune will bring in gross proceeds of $10 million. The company says it intends to use these funds for its phase 2 trial of TH104 in 2024. It will also use the money for working capital and other general corporate purposes.
What This Means for THAR Stock
A stock offering increases the total number of outstanding shares of THAR available. At the same time, it dilutes the investments of current shareholders in the company. That’s one reason the stock is falling today.
Also not helping matters is the $1 price per share in the THAR offering. That’s a heavy discount compared to the stock’s closing price of $3.51 per share on Monday. It makes sense that investors would see the price of THAR fall on that news.
THAR stock is down 69.5% as of Tuesday morning with some 3 million shares traded. The company’s daily average trading volume is closer to 385,000 shares.
Investors looking for more of the most recent stock market stories are in the right place!
We have all of the latest stock market news worth reading about on Monday! A few examples include what’s happening with shares of ESGL Holdings (NASDAQ:ESGL) and RiskOn International (NASDAQ:ROI) stock, as well as a look at the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
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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.
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