Seelos Therapeutics' $5.55M Public Offering As Stock Drop 35%
Portfolio Pulse from Lara Goldstein
Seelos Therapeutics (NASDAQ:SEEL) announced a public offering expected to raise $5.5 million in gross proceeds, causing its stock to drop nearly 35%. The offering includes common stock shares, pre-funded warrants, and common warrants. The proceeds are intended for general corporate purposes and advancing product candidates, including SLS-002 for PTSD. The offering follows a 1-for-30 reverse stock split effective Nov. 28, 2023.
November 29, 2023 | 8:37 pm
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NEGATIVE IMPACT
Seelos Therapeutics' stock price plummeted nearly 35% following the announcement of a $5.55 million public offering. The offering includes common stock and warrants, with proceeds for corporate purposes and product development.
The significant drop in Seelos Therapeutics' stock price is likely due to the dilutive effect of the public offering on existing shareholders. The offering price is also lower than the recent trading price, which can put downward pressure on the stock. The short-term impact is negative as the market absorbs the new shares and adjusts to the dilution.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100