Shares of Strongbridge Biopharma (NASDAQ: SBBP) have plummeted premarket on Thursday after the company announced the pricing of its public offering.
Stonebridge said they are offering 11,111,111 ordinary shares to the public at $2.25 per share, wit the company looking to raise $25 million in total from the sale.
The offering is expected to close out on the 21st of September, while underwriters have a 30-day option to purchase up to 1,666,666 of ordinary shares.
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Strongbridge stated that it will use the money raised from the offering to continue development, facilitate commercial readiness, acquire complementary businesses and commercially launch its drug Recorlev after positive Phase 3 topline data.
One analyst recently commented that Stonebridge’s revenue should significantly increase after the data from the Phase 3 Recorlev study. However, investors don’t seem as enthusiastic.
Strongbridge stock price…
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Stonebridge (SBB)/Source: TradingView
Strongbridge shares have plummeted after the news of the pricing of the public offering. Wednesday saw its shares close at $2.80, but they are now trading down at $2.30, after a fall of 17% premarket.
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.
