Health and Healthcare
Discovery Labs Shareholders Get Smacked on Secondary Offering (DSCO)
Published:
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% to yesterday’s closing price of $3.50.
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.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
