Virax Biolabs Announces Stock Offering: What To Know
Portfolio Pulse from Erica Kollmann
Virax Biolabs Group Limited (NASDAQ:VRAX) announced a $5 million registered direct offering of ordinary shares, causing its stock to trade lower. The offering involves 1,108,892 shares at $4.50 each, expected to close around August 23. The proceeds will be used for working capital and general corporate purposes. Despite a recent surge due to the WHO's declaration of a public health emergency, the stock is currently experiencing overbought conditions with an RSI of 78.71.
August 22, 2024 | 3:12 pm
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Virax Biolabs announced a $5 million stock offering, leading to a 13.8% drop in share price. The offering is expected to close by August 23, with proceeds used for working capital and corporate purposes. The stock is currently overbought with an RSI of 78.71.
The announcement of a stock offering typically leads to a decrease in share price due to dilution concerns. The stock's current overbought status, indicated by an RSI of 78.71, suggests a potential for further price correction. The recent gains from the WHO's declaration may not sustain the current price levels.
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