Why Fortress Biotech (FBIO) Shares Are Getting Hammered

Fortress Biotech Inc FBIO shares are trading lower by 38.5% to $1.28 Friday morning after the company announced pricing of a $10 million public offering.

What Else?

The public offering involves 5,885,000 units at $1.70 per unit. Each unit comprises one share of common stock (or a pre-funded warrant) and one warrant to purchase a common stock share. Certain company directors and officers participated, investing approximately $2.9 million.

The gross proceeds are anticipated to be around $10.0 million, with Roth Capital Partners serving as the exclusive placement agent. The net proceeds will be used for various operational purposes, including research and development, clinical trials, product manufacturing and working capital.

The offering is set to close on or about November 14, pending customary closing conditions.

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According to data from Benzinga Pro, FBIO has a 52-week high of $17.39 and a 52-week low of $1.25.