Discovery Labs Shareholders Get Smacked on Secondary Offering (DSCO)
Respiratory drug maker Discovery Laboratories Inc. (NASDAQ: DSCO) priced a secondary offering of slightly more than 16 million shares this morning, and the stock is getting pummeled as a result. Discovery priced the shares at $2.80, a discount of 20%…
The company expects to realize net proceeds of $42.1 million from the share sale. The underwriters have a 30-day over-allotment option of about 2.41 million shares. Lazard Capital Markets LLC is the sole book-running manager for the offering, Stifel Nicolaus Weisel is co-lead manager, and ROTH Capital Partners, LLC is co-manager of the offering.
The shares are being offered from a shelf registration filed yesterday. The company did not indicate how the net proceeds would be used.
Shares of Discovery Labs are down -18% at $2.87 in a 52-week range of $1.44-$5.39.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
