Pluristem Therapeutics Inc. (NASDAQ: PSTI) is having an incredibly rough time in the market this morning, and for good reason. The company announced an offering that is leading to concerns with regard to dilution. Of course, this is leading to fear among investors, sending the stock spiraling toward the bottom and prompting our partners at Trade Ideas to send the alert. At the moment (8:13), PSTI is trading at $1.69 per share after a loss of $0.28 per share (14.21%) thus far today.
PSTI Takes A Dive On Offering News
As mentioned above, Pluristem Therapeutics is having an incredibly rough start to the trading session in the pre-market hours this morning after the company announced a proposed public offering of its common stock. The offering will take place on the Tel Aviv Stock Exchange.
In the press release, PSTI announced that it has received overall commitments from Israeli institutional investors and accredited investors to purchase 8,873,000 shares at different prices. The total amount of the offering is close to $15 million. The company chose to accept commitments adding up to 7,123,700 shares at an average purchase price of $1.61 per share.
The company also announced that it intends to conduct a public offering of its common shares upon approval from TASE. This offering will come with a minimum purchase price of $1.61 per share and 9,000,000 shares will be up for grabs.
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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 PSTI. In particular, we’re interested in learning more about what the company plans to do with the funding generated through this offering. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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