Source: Gorodenkoff / Shutterstock.com
ImmunoPrecise antibodies (NASDAQ:IPA) shares are falling sharply on Wednesday after the biotherapy company priced its shares in a public offering.
ImmunoPrecise Antibodies is offering 1.1 million shares of IPA for $1 per share. The underwriters of the offering also have a 30-day option to purchase an additional 165,000 shares at a price of $1. Benchmark Company is the sole bookrunning manager for the offering.
ImmunoPrecise Antibodies says the gross proceeds from the public stock offering will be $1.1 million. It intends to use these funds for research and development, capital expenditures, working capital and general corporate purposes.
What this means for IPA shareholders
The offering of IPA Shares will increase the total number of shares outstanding. This will dilute current shareholders’ shares in the company. That’s one of the reasons the stock fell today.
Another reason is the offer price of $1 per share for IPA shares. That’s a significant discount to the previous closing price of $1.54 per share. Given this discount, it makes sense that IPA shares would fall this morning.
IPA stock was down 39% on Wednesday morning.
Investors looking for more current stock market stories have come to the right place!
Investor Place Here you will find the latest stock market news that traders need to know about on Wednesday! Some examples include why stocks of Clean Earth Acquisitions (NASDAQ:CLIN) And MicroAlgo (NASDAQ:MLGO) shares rose today, as did the biggest premarket stock moves this morning. All of this is available at the links below!
More stock market news from Wednesday
At the time of publication: William White did not have, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.
With only the rarest of exceptions, InvestorPlace does not publish commentary on companies that have a market capitalization of less than $100 million or trade fewer than 100,000 shares per day. Because these “penny stocks” are often a playground for fraudsters and market manipulators. If we ever post a comment on a low volume stock that may be affected by our comment, we require itInvestorPlace.comThe authors disclose this fact and warn readers about the risks.
Read more: Penny Stocks — This is how you benefit without being cheated