Zosano Pharma Corp (NASDAQ: ZSAN) fell 48% in the previous session as investors responded negatively to the company announcing pricing of an underwritten public offering of 51.25 million units, each comprising a common share and one warrant to buy one common share at a $0.3 public offering price per unit.
Trading Data
On Wednesday, ZSAN stock slumped 48.56% to $0.2431 with more than 98.02 million shares, compared to its average volume of 2.22 million shares. The stock moved within a range of $0.2300 – 0.2507 after opening trade at $0.2370.
New Stock Offerings
The warrants are exercisable at $0.3 per share, are immediately, and are valid for five years from the issuance date. The company granted underwriters a 30-day option to buy another 7.688 million common shares or additional warrants to buy around 7.688 million common shares.
Zosano expects gross proceeds of $15.4 million excluding the exercise of warrants and before subtracting underwriting commissions and discounts and possible offering expenses. The company expects the offering to close on or around February 10, 2022, subject to standard closing terms. The company will use net proceeds for corporate and general working capital purposes and pre-commercialization activities. So in the coming weeks, investors should keep an eye on ZSAN.
Technical Data
ZSAN stock is below the 20-Day and 50-Day Moving averages of $0.45 and $0.51 respectively. Moreover, the below is trading below the 200-Day moving average of $0.69.
