Why scPharmaceuticals Stock Plunged Today
Shares of scPharmaceuticals (NASDAQ: SCPH) have plunged today, down by 22% as of 1 p.m. EDT, after the company announced the pricing of a public secondary offering. The deal priced at $8.65 per share, a roughly 20% discount compared to yesterday's closing price of $10.83.
The pharmaceutical specialist sold nearly 5.8 million shares to the public at that price, which represents meaningful dilution to existing shareholders, as scPharmaceuticals had around 20.2 million shares outstanding at the end of the first quarter. Gross proceeds for the deal are expected to be approximately $50 million, before factoring in underwriting discounts and commissions. Furthermore, underwriters have an option to buy an additional 867,000 shares.
scPharmaceuticals is developing technology to deliver therapies that currently require intravenous injections. Image source: Getty Images.
Source Fool.com
