Dynavax Technologies Corporation (NASDAQ: DVAX) is having an incredibly rough time in the market today, and for good reason. The company announced the pricing of a previously announced public offering, leading to some concerns among investors. Of course, this sent the value of the stock tumbling, prompting an alert from our friends at Trade Ideas. Currently (8:54), DVAX is trading at $15.65 per share after a loss of $1.55 per share (9.01%) thus far today.
DVAX Falls On Offering News
As mentioned above, Dynavax Technologies Corporation is having a rough start to the day today after announcing the pricing of a previously announced underwritten public offering. Through the offering, the company plans to sell 5 million shares of DVAX common stock at a price of $15.00 per share. It is expected that the company will generate $75 million gross through the offering.
In their PR, DVAX said that they have granted the underwriters a 30-day option to purchase up to an aggregate of 750,000 additional shares of common stock at the public offering price in order to cover over-allotments, if any exist. The offering is expected to close around August 15th, 2017, but is subject to customary closing conditions.
Dynavax Technologies said that they intend to use the net proceeds to fund activities surrounding the anticipated United States commercial launch of HEPLISAV-B. Of course, that's if HEPLISAV-B gains approval from the United States Food and Drug Administration. The proceeds are also expected to help support continuing the clinical development of SD-101 and DV281, continuing R&D activities, and to cover the cost of general corporate purposes.
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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 DVAX. In particular, we're interested in following the public offering to see if everything goes as planned. We're also interested in following efforts to bring HEPLISAV-B to the market as well as push SD-101 and DV281 through clinical phases. We'll continue to follow the story closely and bring the news to you as it breaks!
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