Source: shutterstock.com/Champhei
Aquestive Therapeutics (NASDAQ:AQST) is facing a downturn as the pharmaceutical company discloses plans for a public offering of its shares.
In the offering, Aquestive Therapeutics is putting up 16,666,667 shares of AQST stock for $4.50 each. Underwriters also have the option to acquire an additional 2.5 million shares at the same price within 30 days.
With an eye on generating $75 million in gross proceeds, the company intends to funnel these funds into advancing the development and commercialization of its product pipeline.
Among the products in their pipeline are Anaphylm Sublingual Film for severe allergic reactions and Libervant Buccal Film for seizure clusters in epilepsy patients. The allocation will also cater to general corporate needs.
Implications for AQST Stock
The increase in total outstanding shares of AQST stock resulting from this public offering has led to a dilution of existing shareholder ownership. This, alongside the discounted offering price of $4.50 compared to the previous closing price of $5.34, has caused the stock to plummet.
As of Wednesday morning, AQST stock is down by a significant 14%. Nevertheless, the previous year saw an impressive 165.7% surge in share value when markets closed yesterday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
