P3 Health Partners (NASDAQ:PIII) stock is falling on Tuesday after the company sold shares and warrants to institutional investors in a recent offering.
P3 Health Partners reveals in a filing with the Securities and Exchange Commission (SEC) that it issued roughly 67.4 million shares of PIII stock to institutional investors. These were sold at a price of $0.6270 each.
Investors will note that each of these shares also comes with one warrant to purchase another share of PIII stock. These warrants have an exercise price of $0.5020 each. The warrants expire seven years after being issued.
P3 Health Partners notes that Chicago Pacific Partners bought 31.9 million shares of PIII for about $20 million in the offering. The investor won’t exercise any warrants as this would cause its holdings to surpass $49.99%.
How This Affects PIII Stock
This offering increases the total number of PIII shares on the market, diluting current shareholders’ stakes. This is one reason why PIII stock is falling today.
P3 Health Partners notes that the gross proceeds from this stock sale are roughly $42.2 million. The company will use the funds for general corporate purposes and other activities approved by its Board of Directors.
PIII stock is down 3.8% as of Tuesday morning.
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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.
