Why Zynex Stock Is Dropping Today
Shares of Zynex (NASDAQ: ZYXI), a medical device manufacturer, are down by 9.9% as of 11:23 a.m. EDT on Wednesday, after the company announced the pricing of a public offering of common stock after the market closed on Tuesday. Zynex's decision to sell additional shares isn't sitting well with investors.
Zynex expects to sell 2.5 million shares for $22 per share in this public offering of common stock. Note that half of these shares are being sold directly by Zynex, while the remaining shares are being sold by certain stockholders. The company is granting underwriters a 30-day option to acquire an additional 187,500 shares, while the stockholders participating in this transaction are also giving underwriters the option of buying 187,500 of their shares of common stock.
Zynex expects to raise $27.5 million (in gross proceeds) through this offering of common stock, which should close by July 17. The company will not receive any proceeds from the sale of the shares that are being offered by the stockholders.
Source Fool.com
