Ontrak shares are trading lower after the company announced the pricing of a $6.3 million public offering, a $11 million concurrent private placement and a $16.3 million conversion of secured notes.
Portfolio Pulse from Benzinga Newsdesk
Ontrak Inc. announced the pricing of a $6.3 million public offering, an $11 million concurrent private placement, and a $16.3 million conversion of secured notes, leading to its shares trading lower.
November 10, 2023 | 5:18 pm
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NEGATIVE IMPACT
Ontrak Inc.'s stock price is likely to face downward pressure in the short term due to the announcement of a public offering, private placement, and conversion of secured notes totaling over $33 million.
The announcement of a public offering and private placement typically dilutes existing shares, which can lead to a decrease in stock price. The conversion of secured notes adds to the potential dilution. Given the significant amount of capital being raised, this is likely to have a notable impact on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100