TRACON Pharmaceuticals Inc. (NASDAQ:TCON) dropped 24.5%. The negative sentiment from investors resulted from the companyannouncing that the underwriter of the company’s previously announced public offering was increasing the size of the offering due to demand.
As a result, they expect to purchase around 3.927 million common shares of the company on a firm commitment basis at $3.82 per share minus underwriting commissions and discounts. Equally, the company has given the underwriter a 30-day option to purchase an additional 589,005 common stock shares at the public offering price minus underwriting commission and discounts.
The company expects gross proceeds of around $15 million before subtracting underwriting commission, discount, and approximated offering expenses. The proceeds don’t include the underwriter’s option to buy additional common stock shares. The company will use the net proceeds from this offering to support the continued envafolimab clinical development, general corporate purposes, and working capital. So in the coming weeks, TCON is a stock to watch.
Market Reaction:
On Thursday, TCON stock plunged 24.54% at $3.72 with more than 3.68 million shares, compared to its average volume of 144k shares. The stock had moved within a range of $3.5700 – 3.8200 after opening the trade at $3.80. Over the past 52-week, the stock has been trading within a range of $1.5500 – 12.2000.
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