Milestone Pharmaceuticals (MIST) stock sank on Friday after the biopharmaceutical company announced plans for a proposed public offering. The company said this offering will include shares of its common stock, coupled with Series A and Series B warrants that holders will be able to exercise for additional shares.
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Milestone Pharmaceuticals hasn’t nailed down the specifics of the public offering. That means traders don’t know how many shares and warrants it will include, or what they will be priced at. Even so, news of a public offering weighed on the shares, as it will likely be priced below the stock’s current value, and newly issued shares will dilute the stakes of current investors.
Milestone Pharmaceuticals noted that the funds gained from the public offering will be used to continue its clinical development and commercial launch of etripamil, as working capital, and for other general corporate purposes.
Milestone Pharmaceuticals Stock Movement Today
Milestone Pharmaceuticals stock was down 32.03% during pre-market trading on Friday, following a 6.67% rally yesterday. The stock has risen 8.47% year-to-date and 64.1% over the past 12 months. Today’s news triggered a sell-off of MIST shares, with over 1.2 million units traded, compared to a three-month daily average of about 688,000 shares.
Is Milestone Pharmaceuticals Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Milestone Pharmaceuticals is Moderate Buy, based on one Buy and one Hold rating over the past three months. With that comes an average MIST stock price target of $5, representing a potential 96.31% upside for the shares.
