Why MeiraGTx Holdings Stock Is Down Today

Shares of MeiraGTx Holdings (NASDAQ:MGTX) -- a clinical-stage biotech company -- are down by 11.51% as of 11:55 a.m. EST on Thursday, following the company's announcement of the pricing of a public offering of common stock. Investors aren't thrilled with the prospect of MeiraGTx diluting its existing shareholders.

The company will sell 5 million ordinary shares through an underwritten public offering at a price of $12.85 per share. It is also granting underwriters a 30-day option to acquire an additional 750,000 shares. Note that MeiraGTx's shares closed Wednesday's trading session at $14.36 apiece. As of this writing, the company's stock is down to $12.83, which is more or less in line with the public offering price. The company intends to raise gross proceeds of about $64.3 million through this transaction, which should close on Nov. 23.

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Source Fool.com