Carmell shares are trading lower after the company announced a $3 million private placement of about ~1,333,333 shares of its common stock at a price o $2.25 per common share.
Portfolio Pulse from Benzinga Newsdesk
Carmell Therapeutics (CTCX) announced a $3 million private placement of approximately 1,333,333 shares of its common stock at a price of $2.25 per share, leading to a decrease in its stock price.
April 04, 2024 | 5:00 pm
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Carmell Therapeutics announced a significant private placement, diluting its common stock which resulted in a decrease in its stock price.
The announcement of a private placement often leads to a decrease in stock price due to the dilution of existing shares. In this case, Carmell Therapeutics' decision to issue additional shares at a set price of $2.25, which is likely below the current market price, has led to a negative reaction from the market. This dilution effect makes each existing share represent a smaller ownership percentage in the company, which typically results in a decrease in stock price.
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