Arrowhead Pharmaceuticals Inc (NASDAQ: ARWR) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company issued a press release informing investors of the pricing of a public offering. Of course, this led to fears of dilution, causing declines in the value of the stock. Today, we’ll talk about the news, what we’re seeing from ARWR, and what we’ll be watching for ahead.
ARWR Announces Pricing Of A Public Offering
As mentioned above, Arrowhead Pharmaceuticals is having an overwhelmingly rough start to the trading session this morning, and for good reason. In a press release issued early this morning, the company announced the pricing of an underwritten public offering.
According to the release, ARWR will be offering 10,000,000 shares of its common stock at a price of $5.25 per share. The offering is expected to close on or around January 22nd. Of course, this is subject to customary closing conditions.
Also, in the release, ARWR said that it has granted the underwriters the option to purchase up to an additional 1,500,000 shares of common stock at the offering price. This is a 30-day option.
In the release, Arrowhead Pharmaceuticals said that gross proceeds are expected to be approximately $52.5 million before deducting underwriting discounts, commissions, and other offering expenses. The company said that it plans to use the proceeds from the offering for general corporate purposes. These purposes include working capital, capital expenditures, research and development costs, and clinical trial expenditures.
What We’re Seeing From The Stock
As investors, one of the first things that we learn is that the news moves the market. In this particular case, the news is a bit concerning. After all, public offerings lead to dilution. As a result, we’re seeing heavy declines in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:04), ARWR is trading at $5.39 per share after a loss of $0.33 per share (5.77%) thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ARWR. In particular, we’re interested in following the story surrounding the company’s ongoing development and how the company will use the funding for further development of their impressive pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!