Here's Why TherapeuticsMD Inc Is Falling Today
After the company revealed the pricing details of its recently announced common stock offering, shares of TherapeuticsMD (NYSEMKT: TXMD), a small-cap biotech focused on women's health, fell 11% as of 10:40 a.m. EDT on Tuesday.
TherapeucticsMD announced yesterday that it wanted to sell 12.4 million shares of common stock to the public. That move makes sense since the company held only $97 million in cash on its balance sheet as of June 30. That's not a huge number when compared to the company's net loss of $41 million through the first six months of the year.
However, investors learned today that the secondary offering is taking place at $5.65 per share, a sizable discount to yesterday's closing price of $6.06 per share. That suggests that the company had to give in on pricing in order to raise all of the capital that it wanted.
Source: Fool.com
