Theratechnologies Announces Pricing Of $25M Public Offering Of Common Shares And Concurrent Private Placement
Portfolio Pulse from Benzinga Newsdesk
Theratechnologies Inc. (NASDAQ:THTX) has priced its public offering of 12.5 million common shares at $1.00 per share, expecting to raise approximately $12.5 million. The company has also granted the underwriter, Cantor Fitzgerald & Co., a 30-day option to purchase up to 1.875 million additional shares. Concurrently, Theratechnologies has entered into a subscription agreement with Investissement Québec for a private placement of over 9 million common shares and 3.4 million fully-funded, non-voting subscription receipts, aiming to raise another $12.5 million.
October 26, 2023 | 12:19 pm
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Theratechnologies' public offering and private placement could potentially dilute the value of existing shares, which may negatively impact the stock price in the short term.
The issuance of new shares through a public offering and private placement increases the total number of shares in circulation, which can dilute the value of existing shares. This often leads to a decrease in the stock price in the short term.
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