Why Tivic Health Systems (TIVC) Stock Is Trading Lower
Portfolio Pulse from Henry Khederian
Tivic Health Systems Inc (NASDAQ:TIVC) shares plummeted by 61% to $0.52 after announcing the pricing of its public offering at $0.85 per share, including Series A and Series B warrants. The offering aims to raise approximately $4 million, with Maxim Group LLC as the sole placement agent. The significant drop in share price reflects investor concerns over the dilution of existing shares and the low offering price compared to the stock's 52-week high of $23.79.
May 09, 2024 | 4:01 pm
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Tivic Health Systems Inc's stock price significantly dropped after the announcement of its public offering priced at $0.85 per share, aiming to raise around $4 million. The offering includes Series A and Series B warrants, with the Series A warrants exercisable immediately and expiring in one year, and the Series B warrants expiring in five years.
The sharp decline in TIVC's stock price is directly related to the public offering announcement. The offering price of $0.85 per share is significantly lower than the stock's 52-week high, indicating potential dilution for existing shareholders. The immediate availability of Series A warrants and the long-term availability of Series B warrants could further dilute the stock. The market's reaction, a 61% drop in stock price, reflects these concerns.
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