Why Cormedix (CRMD) Stock Is Getting Hammered
Portfolio Pulse from Henry Khederian
CorMedix Inc. (NASDAQ:CRMD) shares dropped by 23.27% after the company priced its public offering of 7.5 million shares at $4 per share and pre-funded warrants to purchase up to 2.5 million shares at $3.999 per pre-funded warrant. The total gross proceeds are expected to be around $40 million. The company has also granted the underwriters a 30-day option to acquire an additional 1,500,093 shares of common stock.
June 29, 2023 | 1:22 pm
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CorMedix's stock price dropped significantly after the announcement of its public offering. The lower price of the offering compared to the current market price may have led to the sell-off.
The company's decision to price its public offering at $4 per share, which is lower than the current market price, likely led to the sell-off. Investors may be concerned about the dilution of their shares and the potential for the company to raise less capital than if the shares were priced higher.
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