Why Longeveron (LGVN) Shares Are Falling Sharply
Portfolio Pulse from Henry Khederian
Longeveron Inc's stock (LGVN) dropped 22.8% after announcing a registered direct offering of over 1.35 million shares at $1.62 each, with equivalent warrants. The offering, managed by H.C. Wainwright & Co., aims to raise approximately $2.36 million for working capital and general corporate purposes. The closing is expected around December 26.
December 21, 2023 | 1:50 pm
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Longeveron Inc's shares fell sharply due to a direct offering below the current market price, which typically dilutes existing shareholders' equity and indicates potential cash flow issues.
The sharp decline in LGVN's stock price is a direct reaction to the registered direct offering at a price lower than the current market value, which often leads to dilution of value for current shareholders. The need for such an offering could also signal that the company is in need of cash, which may worry investors about its financial health.
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