Elevation Oncology (NASDAQ:ELEV) shares are nosediving at the time of writing today after the company announced an underwritten public offering.
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The offer includes 17.81 million common shares of the company and pre-funded warrants to acquire up to 4.44 million common shares. The combined offer price for each share and the accompanying warrant has been set at $2.25.
Further, the combined offer price for each pre-funded warrant and the accompanying warrant has been set at $2.2499. The accompanying warrants expire five years from the date of issuance and are exercisable immediately. Elevation expects to realize $50 million in gross proceeds from the offering which is expected to close on June 13.
The company plans to use the funds raised for advancing its lead candidate EO-3021 as well as for other general corporate purposes.
Today’s price decline comes after a nearly 200% gain in ELEV shares so far this year. Overall, the street has a $7 consensus price target on ELEV, pointing to a hefty 148.2% potential upside in the stock.
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