Egalet Corp. (NASDAQ: EGLT) is having an incredibly rough day in the market today, and for good reason. The company announced a public offering that threatens to dilute the stock. Of course, this is leading to concern among investors, causing declines in the value of the stock, and prompting our partners at Trade Ideas to alert us to the movement. At the moment (9:25), EGLT is trading at $1.65 per share after a loss of $0.89 per share or 35.04% thus far today.
EGLT Dives On Offering
As mentioned above, Egalet is having an incredibly rough time in the market today following news of a public offering of common stock. The company announced late yesterday that it would be moving forward with a large offering. In fact, the company plans on selling 16.66 million shares.
The shares will be sold at $1.80 per share. Ultimately, the company plans on using the money earned from this offering to support commercial sales and marketing efforts surrounding Arymo ER extended-release tablets for oral use, Sprix nasal spray, and Oxaydo tablets. Any excess funds produced through the offering will be used by EGLT for general corporate purposes.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on EGLT. In particular, we’re interested in following to see how long it takes to recover following the offering news. We’re also planning on watching the results of the new efforts that will take place as a result of the funds raised through the offering. We’ll continue to follow the news closely and bring you the updates as they break!
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