Why CEL-SCI Corporation (CVM) Shares Are Diving
Portfolio Pulse from Henry Khederian
CEL-SCI Corporation (NASDAQ:CVM) shares dropped 13.9% to $2.46 after announcing a stock offering of 3.875 million shares at $2.00 each, aiming to raise $7.75 million for Multikine development, general corporate purposes, and working capital. The offering is managed by ThinkEquity and is expected to close on February 13, 2024. The funds will support the commercial-scale production of Multikine for head & neck cancer.
February 09, 2024 | 4:06 pm
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CEL-SCI Corporation's stock price fell due to a new stock offering priced below the current market value, aimed at raising funds for Multikine development and other corporate needs.
The immediate negative impact on CVM's stock price is due to the offering being priced below the current trading price, which typically dilutes existing shareholders' value. However, the funds raised are crucial for the development of Multikine and could lead to long-term benefits if the product succeeds.
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