CEL-SCI (NYSEMKT:CVM) stock is dropping on Tuesday after the biotechnology company announced details of a public share offering.
CEL-SCI is offering up 2.5 million shares of its common stock at a price of $2 per share. This has the company expecting gross proceeds of $5 million from the public stock offering. It will use these funds for the continued development of Multikine and general corporate purposes.
Of course, investors aren’t reacting positively to this news and that makes sense. Any public stock offering increases the total number of outstanding shares of CVM. That also dilutes the stakes of current shareholders.
To go along with this, the CVM stock offering of $2 per share is below its prior closing price of $2.86 per share. That discount for shares of the company’s stock is also dragging down the stock price.
What Is CVM Stock All About?
CEL-SCI is a biotechnology company focused on the development of treatments for cancer and infectious diseases. The company is seeking out ways to combat these issues by increasing immune system activity.
Multikine is CEL-SCI’s lead product candidate to treat cancer. It has Orphan Drug Status from the Food and Drug Administration (FDA) and has undergone a Phase 3 clinical trial for head and neck cancer.
CVM stock is down 23.1% as of Tuesday morning.
Investors looking for even more of the most recent stock market news will want to keep reading!
We have all of the latest stock market coverage that traders need to know about on Tuesday! That includes everything happening with shares of Masimo (NASDAQ:MASI), Karyopharm Therapeutics (NASDAQ:KPTI), and Biophytis (NASDAQ:BPTS) stock today. You can find out more on these matters 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.
