Why Nabriva Therapeutics Shares Are Falling Today

For the third day in a row Wednesday, shares of Nabriva Therapeutics (NASDAQ: NBRV), a clinical-stage biotech focused on antibiotics, were moving by double-digits. However, today's move is in the wrong direction. Nabriva's stock fell as much as 10% in early morning trading after the company released the pricing details of its just-announced secondary common stock offering.

Nabriva announced that it will sell 9.4 million shares of common stock for $8.50. In addition, the underwriters of the deal have been given the option to purchase up to 1.4 million shares more at the offering price. In total, this deal promises to raise as much as $92 million before subtracting fees.

On the downside, if the underwriters fully exercise their option, current shareholders will be diluted by 51%. What's more, Nabriva's stock closed Tuesday's trading session at $9.19 per share. That's quite a bit above the $8.50 deal price, which suggests that the company had to offer investors a sizable discount in order to raise all of the capital that it wanted.

Source: Fool.com