Seelos Therapeutics (NASDAQ:SEEL) stock is falling on Wednesday after the clinical-stage biopharmaceutical company priced a public offering of its shares.
That public offering has Seelos Therapeutics selling 1,781,934 shares of SEEL stock and pre-funded warrants for up to 2,422,612 shares. It also includes accompanying warrants for another 4,204,546 shares.
The stocks and warrants are being sold at a combined price of $1.32 per share while the pre-funded warrants and accompanied warrants are being sold for $1.319 each. The common warrants have an exercise price of $1.32 per share and the pre-funded ones are exercisable at $0.001 per share.
Seelos Therapeutics is expecting to raise $5.55 million from this public offering. It will use the money to fund its research and development, pay back an outstanding convertible promissory note and for general corporate purposes.
How This Affects SEEL Stock
A public offering such as this increases the total number of shares of SEEL stock. That doesn’t often sit well with current shareholders as it dilutes their stakes in the company.
On that same note, the offering price of $1.32 per share is a significant discount over its prior closing price of $2.38 per share. Given that pricing, it makes sense that SEEL stock would give up some ground today.
SEEL stock is down 41.6% as of Wednesday morning.
Investors looking for more of the most recent stock market news will want to keep reading!
We have all of the latest stock market happenings worth reading about on Wednesday! A few examples include why shares of Wheeler Real Estate IT (NASDAQ:WHLR) and Avenue Therapeutics (NASDAQ:ATXI) stock are up today, as well as a dive into the biggest pre-market stock movers this morning. All of that news is read 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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