Why Osmotica Pharmaceuticals Is Plunging Today
Shares of Osmotica Pharmaceuticals (NASDAQ: OSMT), a small-cap biopharmaceutical company, are down by 20.4% as of 11:26 a.m. EDT on Tuesday, following the company's announcement on Monday evening of the pricing of a public offering of common stock. Investors aren't thrilled with the prospect of Osmotica resorting to dilutive forms of financing.
Osmotica said it would offer 5 million shares to the public for $6.55 per share. Also, the company is giving underwriters a 30-day option to purchase an additional 750,000 shares. The company expects this public offering of common stock to close on July 16. Note that Osmotica's stock ended the previous trading session at $7.72 apiece. Thus, it isn't surprising that investors responded to this news by selling off the company's stock. At writing, Osmostica's shares are worth $6.15 apiece.
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Source Fool.com
