Brickell Biotech (NASDAQ:BBI) Stock is All Set To Gap-Down: Now What?
Clinical stage pharmaceutical company Brickell Biotech (NASDAQ:BBI), which is developing innovative prescription therapeutics for treating skin diseases on 19thJuly, 2021 confirmed on underwriter agreeing to augment the size of the earlier announced public offering. It also confirmed purchase on commitment basis 11,290,323 shares of common stock at a price to the public of $0.62 per share.
It is expected that the offering would happen on July 22 based on satisfactory closing conditions and H.C. Wainwright & Co. is the sole book-running manager for the offering. The firm also permitted underwriter 30-day option for purchasing an additional 1,693,548 shares of common stock at price, reducing discounts and commissions.
It is expected that proceeds of $7 million will be done through the offering and the firm aims to harness it for R&D as well as working capital and general corporate purposes.
The company is offering it through “shelf” registration statement on Form S-3 (File No. 333-254037) filed with the Securities and Exchange Commission (“SEC”) and is being done only through a prospectus supplement, which is a part of the registration statement. A prospectus supplement as well as accompanying prospectus are available also on the SEC’s website. Brickell focuses on acquiring and developing pharmaceutical products that can be successful in marketplace as well as transform lives.
Market Reaction:
On Monday, BBI stock fell 1.77% at $0.7367 with more than 1.13 million shares, compared to its average volume of 1.13 million shares. The stock has moved within a range of $0.7100 – 0.7450 after opening the trade at $0.75. Over the past 52-week, the stock has been trading within a range of $0.4700 – 1.7000. The stock is down another 17.20% in the pre-market session at $0.61.
