Taysha Gene Therapies (NASDAQ:TSHA) stock is taking a beating on Wednesday after the gene therapy company announced a proposed public offering for its shares.
Taysha Gene Therapies says it intends to offer up to $75 million worth of TSHA stock in this offering. However, the company hasn’t nailed down the number of shares or their price.
What we do know is that it also intends to offer pre-funded warrants for certain investors. On top of that, underwriters have a 30-day option to acquire an additional 15% of shares included in the offering.
Jefferies and Goldman Sachs & Co. LLC are serving as joint book-running managers for the public offering. Cantor is acting as a book-running manager for it as well.
How This Affects TSHA Stock
With this public offering will come an increase in the number of TSHA shares on the market. Doing this dilutes the stakes of current investors in the company. That’s one of the reasons why the shares are falling today.
On top of that, the pricing of the offering may upset investors. It’s expected to be discounted compared to the company’s prior closing price. If so, that will likely have a further negative effect on the company’s shares.
TSHA stock is down 14% as of Wednesday morning.
There are plenty of other stock market stories traders are going to want to read about today!
We have all of the hottest stock market stories ready to go on Wednesday! That includes all of the latest news from GRI Bio (NASDAQ:GRI), Anew Medical (NASDAQ:WENA) and Syntec Optics (NASDAQ:OPTX). You can read up on all of these matters at the following links!
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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.
