BioVie (BIVI) stock plummeted on Friday after the clinical-stage biopharmaceutical company priced shares in a public offering. The company will sell 6 million units for $2 each, with each unit containing one share of BIVI stock and one warrant to purchase another share. The warrants are immediately exercisable, have an exercise price of $2.50 per share, and expire five years after they are issued.
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BioVie expects gross proceeds of $12 million from this public offering. However, it could generate more if underwriters exercise their option to acquire additional units. This allows underwriters to purchase another 900,000 units at the public offering price within 45 days of the offering. The company noted it will use funds generated from this offering for working capital and general corporate purposes.
BioVie Stock Movement Today
BioVie stock was down 48.45% in pre-market trading on Friday, following a 25.58% drop yesterday. The shares have also fallen 85.45% year-to-date and 88.27% over the past 12 months. Today’s news has seen some 1.1 million shares traded, compared to a three-month daily average of about 58,000 units.
BIVI stock’s fall today makes sense. A public offering dilutes the stakes of current shareholders. It also priced shares below the stock’s previous closing price of $2.91, offering the new units at a discount.
Is BioVie Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of BioVie stock is thin. However, TipRanks’ AI analyst Spark has it covered. Spark rates BIVI stock an Underperform (38) with no price target. It cites “significant financial challenges as it remains in the R&D phase with no revenue” as reasons for this stance.
