Viking Therapeutics Inc (NASDAQ: VKTX) is having a relatively strong day in the market today. Interestingly enough, this comes with the company’s announcement of a coming offering. Today, we’ll talk about the announcement, what we’re seeing from the stock, and what we’ll be watching for with regard to VKTX ahead.
VKTX Announces Coming Offering
As mentioned above, Viking Therapeutics is having a relatively strong start to the trading session today after announcing that it plans on issuing a public offering. The company announced in a press release that it intends to offer and sell shares of its common stock in an underwritten public offering. Of course, the offering will be subject to market conditions.
In the PR, VKTX also said that it intends on granting the underwriters of the offering a 30-day option to purchase up to an additional 15% of the shares of common stock offered under the same terms and conditions of the offering. All shares sold in the offering will be sold by Viking Therapeutics directly. However, the amount of shares and price have not yet been disclosed. This data will come with an S-3 filing with the SEC relatively soon.
In the PR, VKTX said that it intends on using the proceeds from the offering to fund further development of various pipeline programs. In particular, Viking Therapeutics mentioned VK5211, VK2809 and VK0214. The funds will also be used for general research and development purposes, working capital and general corporate purposes.
How The Stock Reacted To The News
In general, when a publicly traded company announces a coming public offering, we tend to see declines in the stock. However, in this particular case, VKTX is finding its way toward the top. Essentially, investors knew that an S-3 was coming as the company is in need of funds to continue the development of its impressive pipeline. Of course, our partners at Trade Ideas were the first to alert us to the movement. Currently (11:31), VKTX is trading at $2.94 per share after a gain of $0.20 per share or 7.30% thus far today.
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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 VKTX. In particular, we’re interested in learning more about the size and price of the offering that’s coming as well as following the company through the continued development of key pipeline products. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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