Altimmune Inc (NASDAQ: ALT) is having an incredibly bad start to the trading session thsi morning, and for good reason. The company issued an SEC filing surrounding a dilutive transaction. Of course, the news upset investors, sending the stock tumbling down. Today, we’ll talk about:
- The offering;
- what we’re seeing from ALT as a result; and
- what we’ll be watching for with regard to the stock ahead.
ALT Falls On SEC Filing
As mentioned above, Altimmune is having an incredibly rough start to the trading session this morning after news broke of a dilutive transaction. In an SEC filing published this morning, the company announced details of an offering of common stock that will be an incredibly dilutive transaction.
In the filing, ALT said that it will be moving with a $12 million offering. The price of the offering is at an incredible discount of just $5 per share. That’s $3.78 per share lower than yesterday’s closing price. The company will also be offering warrants with an exercise price of $6. Of course, the move is a dilutive one that will add a serious amount of slices to the ALT pie. As a result, those already sitting at the table see an immediate reduction in value.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Altimmune, the news proved to be overwhelmingly negative. After all, investors are never fans of dilution. So, it comes as no surprise that upset investors are sending the stock tumbling in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:29), ALT is trading at $4.40 per share after a loss of $4.38 per share or 49.89% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ALT. In particular, we’re interested in following the story surrounding the company’s continued development of a relatively strong pipeline of products. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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