Why Flexion Therapeutics Is Tumbling 10% Today
After the company reported it had priced its common share offering at $9.75 per share, shares in Flexion Therapeutics (NASDAQ: FLXN) are trading 10% lower at 11:30 a.m. EST on Thursday.
Demand for the pharmaceutical company's osteoarthritis treatment, Zilretta, has been significantly lowered by COVID-19 closures to doctors' offices, prompting management to bolster its balance sheet via a dilutive equity offering. On Thursday the company announced it will sell approximately 9.2 million common shares at $9.75 per share, plus up to an additional 1.4 million shares to meet over-allotments if necessary.
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Source Fool.com
