Catalyst Pharmaceuticals shares are trading lower after the company announced a $150 million public offering of 10 million of its common stock at a price of $15 per share.
Portfolio Pulse from Benzinga Newsdesk
Catalyst Pharmaceuticals' stock is trading lower following the announcement of a $150 million public offering, which will issue 10 million shares at $15 each.
January 05, 2024 | 4:49 pm
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Catalyst Pharmaceuticals' stock price is expected to face downward pressure in the short term due to the dilutive effect of the new public offering.
The announcement of a public offering typically leads to a short-term decline in stock price due to dilution of existing shares. In this case, Catalyst Pharmaceuticals is offering a significant number of new shares, which can lead to concerns about dilution of equity and earnings per share among current shareholders.
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