Codexis Offering Priced at $1.50, Shares Plunge 25% Premarket
CDXS sits 55% above its 52-week low of $0.958.
Summary
Codexis priced its public offering of 16.7 million shares at $1.50, a 5% discount to the prior close, but the stock cratered 25% to $1.49 in premarket trading Friday. The offering, expected to close July 27, will raise about $23.1 million for working capital and R&D. This follows the after-hours announcement yesterday and the premarket pricing report from Reuters earlier this morning. The sharp sell-off suggests the market is reacting to the dilutive impact and the discount, with shares now trading below the offer price. The underwriters have a 30-day option for an additional 2.5 million shares, which could add further pressure.
At the time of this announcement, CDXS was trading at $1.49 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $180.9M. The 52-week trading range was $0.96 to $3.87. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.