Here's Why Abeona Therapeutics Fell as Much as 43.8% Today
Shares of Abeona Therapeutics (NASDAQ: ABEO) dropped nearly 44% today after the company announced the pricing of a public offering of common stock and pre-funded warrants. The gene therapy developer is offering up to 32.4 million shares at $2.50 apiece and 9 million pre-funded warrants at roughly the same price. Pre-funded warrants provide the right to purchase shares of common stock in the future.
Abeona Therapeutics expects to raise up to $103.5 million in gross proceeds from the offerings, which will be needed to fund late-stage clinical programs aimed at rare diseases. But investors are more concerned over the amount of dilution that will result from the offerings.
As of 11:36 a.m. EST, the pharma stock had settled to a 33.2% loss.
Source Fool.com
