Why BioSig Technologies Is Plunging Today
On Wednesday morning BioSig Technologies (NASDAQ:BSGM) announced a registered direct offering of common stock. With the medical device company set to issue new shares and dilute existing shareholders, BioSig's stock is dropping today and is down by 20.4% as of 12:41 p.m. EDT.
BioSig said it had reached an agreement with several accredited and institutional investors, which will purchase 2,187,500 shares of its common stock at a price of $8 per share. The registered direct offering is expected to close on June 26; BioSig will raise approximately $17.5 million in gross proceeds from this transaction. Note that the company's stock closed at $9.71 on Tuesday. As of this writing, BioSig's shares are worth $7.72. This is the second time this year BioSig has sold new shares in an attempt to raise capital. Back in February the company raised $10 million (in gross proceeds) in a public offering during which it sold 2,500,000 shares of its common stock.
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Source Fool.com
