CHMA - Why Chiasma's Shares Are Down Today
On Wednesday morning, Chiasma, Inc. (NASDAQ: CHMA) announced the pricing of a public offering of common stock and pre-funded warrants. Naturally, investors are not thrilled about the company's decision to dilute its existing shareholders, which explains why Chiasma's shares are plunging today. The company's stock is down by 10.4% as of 11:30 a.m. EDT today.
Chiasma first announced its intention to initiate a public offering of common stock and pre-funded warrants after the market closed on Tuesday. Today, the company said it intends to offer 12.5 million shares of its common stock for $4 per share, and the company will also sell pre-funded warrants to some investors -- which give said investors the right to purchase shares of its common stock at a later date -- for $3.99 per underlying share.
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