Anthera Pharmaceuticals (NASDAQ: ANTH)
Anthera Pharmaceuticals is having an overwhelmingly rough day in the market today. After announcing a public offering in the after-hours yesterday, the stock went on a steep dive, causing it to open on an exceptionally low note today. Below, we'll talk about the offering, what we're seeing from the stock, and what we'll be watching for with regard to ANTH ahead.
ANTH Prices Offering Of 30 Million Shares
As mentioned above, Anthera isn't having the best of days in the market today. Before we get too deep into why, we would like to thank our partners at Trade Ideas for being the first to inform us of the losses on the stock. As soon as we received the alert, the CNA Finance team started digging to see why the stock was making a run for the bottom. It didn't take long to dig up the dirt. It seems as though the declines are the result of dilution concerns.
In an announcement made after the closing bell yesterday, ANTH announced that it would be issuing a secondary public offering. The goal of the offering is to raise a total of $15 million. To do so, the company will be selling 30 million shares at a price of about $0.50 per share. Of course, this proved to be concerning to investors. After all, secondary public offerings are a main source of dilution in the market and never something that investors want to see.
What We're Seeing From The Stock
As investors and traders, one of the first things that we learn is that the news moves the market, and this case is proving to be no different. Unfortunately, the secondary public offering has left a bad taste in investors' mouths, leading to massive declines in the value of the stock. Currently (10:14), ANTH is trading at $0.42 per share after a loss of $0.26 per share (38.23%) thus far today.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ANTH. In particular, we're interested in learning more about how the funds raised from this offering will be allocated. We'll continue to follow the story closely and bring any developments to you as they break!
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