Sarepta Therapeutics Inc (NASDAQ: SRPT) is having a rough start to the day today in the pre-market hours, and for good reason. The company announced an offering this morning that’s proving to be a cause for concern among investors. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (8:58), SRPT is trading at $42.15 per share after a loss of $1.26 per share (2.90%) thus far today.
SRPT Announces Offering
As mentioned above, Sarepta Therapeutics is having a rough start to the day in the pre-market hours today after announcing an offering. The company announced today that it plans to sell $250 million in shares of common stock in an underwritten public offering. The company also hopes to grant the underwriters a 30-day option to purchase an additional $37.5 million in shares of common stock.
The first purchase in this offering is likely to come from Douglas Ingram, the President and CEO at SRPT. In fact, he has expressed that he is interested in purchasing up to $2 million in stock at the offering price.
The offering will be done with the assistance of Goldman Sachs as well as J.P. Morgan Securities, as they act as joint book-running managers for the proposed offering. It was also announced that Credit Suisse Securities will be acting as a joint book-runner.
What Is The Money For?
SRPT said that the proceeds produced by the offering will be used largely for the continuation and initiation of further clinical trials, commercialization, and manufacturing, as well as business development activities. The company also said that the funds may be used in the potential licensing or acquisition of complementary products and technologies.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SRPT. In particular, we’re interested in following the company as it moves through the offering and starts to use the funding. We’ll continue to follow the story closely and bring the news to you as it breaks!
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