Progenity Inc. (NASDAQ:PROG) is down 30% in pre-market after announcing the pricing of the previously announced $40 million public offerings of 40 million common stock shares and warrants to buy an additional 40 million common shares.
The company is selling each share together with an option to buy a common warrant for a combined price of $1 per common share and warrant minus commissions and underwriting discounts. The warrants are exercisable immediately at an exercise price of $1 per share with a term of five years from the day of issuance.
The company anticipates gross proceeds of around $40 million before accounting for offering expenses, commissions, and underwriting discounts. Additionally, the company gave underwriters 30 days to buy another 6 million common shares and warrants to buy another 6 million common stock shares at the offering price minus commissions and discounts. Progenity is selling all securities, and the offer will close on or around 24, 2021, subject to meeting closing conditions. With the share offering, PROG is worth watching in the coming weeks.