Fortress Biotech Inc (FBIO)

Fortress Biotech Inc (FBIO) stock dropped by 22.62% due to a recent announcement made by Fortress Biotech regarding a stock offering of $11 million. Details of the Stock Offering

• Fortress Biotech disclosed that it has entered into a definitive agreement for the issuance and sale of 3,303,305 shares of its common stock, along with warrants to purchase up to 3,303,305 shares of common stock. The combined offering price for these shares of common stock and accompanying warrants is set at $3.33 per share of common stock, following Nasdaq rules for pricing at-the-market.
• The warrants issued in this offering have an exercise price of $3.21 per share, come with immediate exercisability, and are valid for a period of five years from the date of issuance. The gross proceeds generated from this offering, prior to the deduction of placement agent fees and other offering-related expenses, are anticipated to be approximately $11.0 million.
• Fortress Biotech intends to allocate the net proceeds from this offering to support its operational activities, including general corporate purposes. These purposes may encompass research and development expenditures, clinical trial expenses, potential product licensing or acquisitions, and augmenting working capital.
• The exclusive placement agent for this offering is Roth Capital Partners, and the closing of the offering is expected to occur around January 3, 2024, subject to the fulfillment of customary closing conditions. The significant stock price decline of Fortress Biotech Inc (FBIO) likely reflects market reactions and investor sentiment following the announcement of this stock offering and the associated terms. Investors are advised to stay informed about developments in this offering and their potential implications for the company's financial position and strategic objectives.