Why Longeveron (LGVN) Shares Are Down 15%
Portfolio Pulse from Henry Khederian
Longeveron Inc (NASDAQ:LGVN) shares dropped 12.8% to $3.40 after announcing a $9 million registered direct offering of 2.2 million shares at $4.025 per share, including unregistered warrants at $3.90 each. The proceeds will fund clinical development, regulatory approvals, and other corporate needs. The offering is expected to close on July 19. Analysts have a 12-month price target of $12.0 for LGVN.
July 18, 2024 | 7:04 pm
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NEGATIVE IMPACT
Longeveron shares fell 12.8% to $3.40 after announcing a $9 million registered direct offering of 2.2 million shares at $4.025 per share, including unregistered warrants at $3.90 each. The proceeds will be used for clinical development, regulatory approvals, and other corporate needs. Analysts have a 12-month price target of $12.0 for LGVN.
The announcement of a direct offering typically dilutes existing shares, leading to a drop in share price. However, the funds raised will support clinical development and regulatory approvals, which could be positive in the long term. Analysts' price targets suggest potential upside.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100