Progenity Inc (NASDAQ: PROG) shares have plunged premarket after the company announced the pricing of its public offering of 40 million shares and warrants.
The biotechnology company is selling one share and one warrant for $1. The warrants will have an exercise price of $1 per share and are exercisable immediately, with an expiration date expire five years after the issuance.
Additionally, the company has granted the underwriter a 30-day option to purchase up to 6,000,000 shares of common stock and warrants at the public offering price.
The San Diego-based firm is expecting to receive proceeds of approximately $40 million.
Progenity shares have plunged 51.6% to $0.72 premarket. In 2021 its shares have declined 71.94%. The company went public in June 2020, pricing its IPO at $15 per share. Since then it has been mostly downhill for Progenity's share price, losing 84.4% of its value in the last 12 months.
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