Why Accelerate Diagnostics (AXDX) Stock Is Down 38%
Portfolio Pulse from Henry Khederian
Accelerate Diagnostics, Inc. (NASDAQ:AXDX) stock plummeted 38% to $1.00 after announcing the pricing of an underwritten public offering of 6,860,659 units at $1.50 each. Each unit includes a share of common stock and a warrant. The offering includes an option for underwriters to purchase additional shares and/or warrants, with warrants exercisable at $1.65 and pre-funded warrants at $0.01, both valid for five years. The expected gross proceeds are $10.3 million. Additionally, a private placement to the Jack W. Schuler Living Trust will potentially bring in $4.7 million. The public offering is expected to close around January 23, with William Blair & Company as the sole book-running manager and Craig-Hallum Capital Group LLC as the co-manager. AXDX's 52-week trading range is between $0.95 and $11.90.
January 19, 2024 | 3:57 pm
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Accelerate Diagnostics' stock price fell sharply due to the pricing of a public offering at $1.50 per unit, which is below the current trading price, and the issuance of additional warrants exercisable at $1.65.
The significant drop in AXDX's stock price is likely due to the market's reaction to the public offering being priced below the current trading price, which can be seen as a negative signal about the company's valuation. Additionally, the issuance of warrants exercisable at $1.65 could lead to future dilution of the stock, which typically puts downward pressure on the share price. The short-term impact is negative as the market absorbs the new shares and adjusts to the potential dilution.
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