USA - Here's why Osmotica Pharmaceuticals is down 35% on Thursday
Shares of Osmotica Pharmaceuticals plc ( NASDAQ: OSMT ) tanked more than 35% on Thursday as the company priced its underwritten public offering of 14 million ordinary shares at a discount.
Osmotica to generate $35 million in gross proceeds from the offering
Osmotica priced its previously announced public offering at $2.50 a share that represents an about 25% discount compared to the price at which the stock closed on Wednesday.
The speciality pharmaceuticals company expects to generate $35 million in gross proceeds from the offer that will close by early next week after meeting customary closing conditions.
Underwriters can buy up to another 21 million ordinary shares at the public offering price within 30 days. H.C. Wainwright & Co is serving as the sole book-running manager for the public offering.
The announcement comes months after Osmotica sold its legacy business to Alora Pharmaceuticals.
Offering includes warrants to purchase up to 14 million ordinary shares
The offer also includes warrants to purchase up to 14 million common shares, Osmotica revealed in a press release this morning.
The warrants have an exercise price of $3.10 per share, are immediately exercisable and will expire three and one-half years from the date of issuance.
Founded in 2000, the biopharmaceutical firm is headquartered in New Jersey and focuses on the development and commercialisation of speciality products that target markets with underserved patient populations. The Nasdaq-listed company now has a market cap of $156 million.
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