Shares of Athersys (NASDAQ: ATHX) tumbled nearly 28% today after the company announced the pricing of a public offering of common stock. The development-stage drug company will offer up to 25.6 million shares of common stock at $2.25 per share. If all shares are purchased, then the business will raise $57.5 million in gross proceeds.
Management is wisely taking advantage of a soaring stock price, which had more than tripled from the beginning of the year through the end of March. That allowed Athersys to raise money and limit dilution, although the offering could increase the outstanding share count by roughly 17%.
As of 11:57 a.m. EDT on Thursday, the small-cap stock had settled to a 23.5% loss.