Why Allarity Therapeutics Stock Is Tanking Today
Portfolio Pulse from Adam Eckert
Allarity Therapeutics Inc (NASDAQ:ALLR) announced the pricing of a public offering of 2.44 million shares and common warrants at a combined price of $4.50 per share, expecting to raise approximately $11 million. The proceeds will be used to pay account payables, accrued liabilities, payments under certain license agreements, an outstanding promissory note, conduct clinical trials, and for working capital. The offering is expected to close on July 10. Following the announcement, Allarity shares were down 52% at $3.96.
July 06, 2023 | 12:52 pm
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Allarity Therapeutics' stock price dropped significantly following the announcement of a public offering at a price lower than the current trading price.
The company's decision to price the public offering at $4.50 per share, which is significantly lower than the current trading price, has led to a decrease in the stock price as investors adjust their valuation of the company. This is a common reaction in the market when a company announces a public offering at a price lower than the current trading price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100