Clinical stage pharmaceutical firm Brickell Biotech Inc (NASDAQ:BBI) saw its stock tank by as much as 25% on Thursday after it made an announcement with regards to its underwritten public offering. The company announced the pricing of the previously announced offering yesterday and it seems that the details did not quite thrill investors.
Market Action:
On Thursday, BBI stock lost 25.53% at $0.3990 with more than 19.49 million shares, compared to its average volume of 1.52 million shares. The stock has moved within a range of $0.3710 – 0.4200 after opening the trade at $0.3945.
Prices Public Offering of Common Stock
Brickell informed that it was going to offer as many as 26316000 shares of the common stock in the offering for the price of $0.38 a share. However, that is not all. The company has also provided the underwriters of the offering with an option to pick up 3947400 more shares of the Brickell common stock within 30 days.
Although the underwriters are going to be offered the same price for the shares, it should be noted that the underwriting fee will not be involved in that case. If the usual closing conditions are met, the public offering is going to be closed on November 1, 2021. It has also been revealed that the gross proceeds from the offering are going to be to the tune of as much as $10 million. However, underwriting fees and other expenses related to the offering are going to be deducted.
Traders Note:
BBI stock is trading below the 20-Day and 50-Day Moving averages of $0.57 and $0.67 respectively. Moreover, the stock is trading below 200-Day moving average of $0.91. The stock is down 42% in the past 3-month.
