RedHill Biopharma Ltd (NASDAQ:RDHL) Stock Falls Sharply On New Offerings News
Specialty biopharmaceutical firm RedHill Biopharma Ltd (NASDAQ:RDHL) saw its stock go into a significant downward spiral this past Friday after it announced the pricing with regards to the public offering of American Depository Shares.
Market Stats
On Friday, RDHL stock slumped 27% to $2.83 with more than 4.23 million shares, compared to its average volume of 1.23 million shares. The stock has moved within a range of $2.6000 – 3.0000 after opening trading at $2.62.
Announces Pricing of $15.5 Million Public Offering of American Depositary Shares
The company announced that it was going to offer as many as 4.7 million units of its American Depository Shares in the offering and was looking to bring in gross proceeds to the tune of $15.5 million. It should be noted that commissions, underwriting charges and other offering related expenses are going to be deducted from the proceeds.
The news was not welcomed by investors and the RedHill stock tanked by as much as 27% as a consequence. It should be noted that each American Depository Shares in the company is equal to 10 common shares.
The offering is going to be closed on November 23, 2021 and it now remains to be seen if the company is able to hit its target. The book runner for the offering is Cantor Fitzgerald & Co. While the decline in the stock has been alarming, it now remains to be seen if the stock managed to make a recovery any time soon.
Traders Corner
RDHL stock is trading below the 20-Day and 50-Day Moving averages of $4.69 and $1.99 respectively. Moreover, the stock is trading below the 200-Day moving average of $6.82. The stock is down 49% in the past month.
