Motus GI (NASDAQ:MOTS) stock is falling on Tuesday after the medical technology company announced the pricing of its shares in a public offering.
This has the company offering 3,333,334 shares of MOTS stock for $1.50 per share. Each of these shares also comes with a Series A and Series B warrant.
The Series A and Series B warrants are both exercisable for $1.50 and grant the holder one additional share of MOTS stock each. The Series A warrants expire in five years and the Series B warrants expire in 18 months.
Motus GI will see gross proceeds of $5 million from this public offering. It will use the funds gained from this offering for working capital and other general corporate purposes. Investors will also note that A.G.P./Alliance Global Partners is the sole placement agent for this offering.
What This Means for MOTS Stock
With this offering comes an increase in the total number of outstanding shares of MOTS stock. That means current investors in Motus GI will see their stakes diluted by the offering. That’s one reason the stock is down today.
The other is the offering price of $1.50 per share. That’s well below the stock’s price closing price of $2.15 per share. It makes sense the stock would drop alongside an offering at this price.
MOTS stock is down 44.2% as of Tuesday morning and is down 83.9% year-to-date as of yesterday’s close.
Investors seeking out even more of the latest stock market stories are in the right place!
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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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