Shares of Fortress Biotech Inc, a pioneering biopharmaceutical company, took a nosedive on Friday morning in the wake of the company’s revelation regarding the pricing of a substantial $10 million public offering. The stock, which commenced trading on Thursday at $2.08, plummeted to $1.35 following the announcement, reflecting the impact of the financial move.
At the time of this publication, Fortress Biotech Inc stock (FBIO) has witnessed a decline.
Fortress Biotech Inc
Current Price: $1.31
Change : -0.77
Change (%): (-36.84%)
Volume: 739.3K
Source: Tomorrow Events Market Data
The public offering, comprising 5,885,000 units at a rate of $1.70 per unit, has garnered attention for its involvement of key company figures. Each unit is composed of either one common stock share or a pre-funded warrant, accompanied by an additional warrant for the purchase of a common stock share.
Notably, select directors and officers of Fortress Biotech actively participated in the offering, collectively acquiring approximately $2.9 million worth of units at the stipulated purchase price. The involvement of internal leadership underscores a commitment to the company’s strategic financial decisions.
Before factoring in placement agent fees and other associated expenses, the gross proceeds from the offering are estimated to reach around $10.0 million. Fortress Biotech intends to allocate the net proceeds toward its operational needs, encompassing general corporate purposes. The application of funds may span research and development expenditures, clinical trial outlays, product manufacturing and supply, and bolstering working capital.
Roth Capital Partners has been appointed as the exclusive placement agent for the offering, overseeing the intricate financial processes. The anticipated closing date for the offering is on or about November 14, 2023, contingent upon the fulfillment of standard closing conditions.
The unfolding events provide insights into the financial maneuvers of Fortress Biotech Inc, shedding light on the intricacies of its public offering strategy. Investors and industry observers are keenly watching the developments as the company navigates the complexities of its financial landscape.
