Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Osmotica Pharmaceuticals (NASDAQ: OSMT) shares have plummeted premarket Thursday in reaction to the announcement of the pricing of its public offering of 14 million shares and warrants to purchase up to 14 million shares.
They have been priced at $2.50 per share and accompanying warrant, with the warrants having an exercise price of $3.10 per share. They are immediately exercisable and will expire three and one-half years from the date of issuance.
In addition, the company has granted the underwriter a 30-day option to purchase up to additional 2.1 million shares and/or additional warrants to purchase up to 2.1 million ordinary shares at the public offering price per share and per warrant.
Osmotica, which is a biopharmaceutical company focused on products that target markets with underserved patient populations, said it expects the proceeds to be approximately $35 million. H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.
This offering is expected to close on or about October 12.
The news has seen Osmotica Pharmaceuticals shares fall 40.52% premarket to $1.82. Its stock price is down over 25% for the year-to-date
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