Medgenics Inc. (NYSEMKT: MDGN) saw its shares drop on Tuesday after the company announced the pricing of its secondary offering. The 3.64 million shares will be priced at $5.50 per share, with an overallotment option for an additional 546,000 shares. At this price, the entire offering is valued up to $23.0 million. The offering is expected to close on June 24.
Note that this company has a total market cap of roughly $180 million, with this offering being valued at about 12.8% of the total cap.
Looking at the 50-day ($5.36) and 200-day ($5.68) moving averages, the offering appears accurately priced between these averages.
Apart from Tuesday’s move, the stock is up 3.7% year to date, while over the past 52 weeks the stock is down over 7%.
Jefferies is acting as the sole book-running manager for the offering. JMP Securities and Needham are acting as co-managers.
This company’s mission is to unlock the potential of genomic medicine to identify and treat patients with life-altering conditions. Its efforts, including its internal research and development and ongoing sponsored research and licensing agreements with a well-respected pediatric academic medical center, give Medgenics the ability to focus on the underlying genetic pathway of pediatric diseases with the goal of finding therapeutic solutions for subpopulations of both children and adults living with rare and other difficult-to-treat diseases. Medgenics is also the developer of TARGT (Transduced Autologous Restorative Gene Therapy), a proprietary gene therapy platform.
Shares of Medgenics were trading down 13.5% at $5.40 on Tuesday, with a consensus analyst price target of $13.17 and a 52-week trading range of $3.09 to $10.25.