Reviva Pharmaceuticals (RVPH) stock plummeted on Friday after the clinical-stage biopharmaceutical company priced a public offering of its shares. The public offering has the company selling 27 million shares of RVPH stock for $0.335 each. The shares also come with a Series E warrant and a Series F warrant to purchase another 27 million shares each.
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Reviva Pharmaceuticals noted that the exercise price for the warrants is $0.335 per share. The Series E warrants are exercisable immediately and expire in five years, while the Series F warrants are exercisable immediately and expire in 12 months.
Reviva Pharmaceuticals expects this public offering to generate $9 million in gross proceeds. The company intends to use the funds for research and development, working capital, and other general corporate purposes.
Reviva Pharmaceuticals Stock Movement Today
Reviva Pharmaceuticals stock was down 39.2% in pre-market trading on Friday, following a 3.73% rally yesterday. The shares have decreased 76.83% year-to-date and 67.23% over the past 12 months. Today’s news came with heavy trading, as more than 6 million shares changed hands, compared to a three-month daily average of about 1.85 million units.
The RVPH stock drop makes sense as the public offering is priced well below the shares’ previous closing price. It also dilutes current shareholders’ stakes in the company.
Is Reviva Pharmaceuticals Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Reviva Pharmaceuticals is Strong Buy, based on four Buy ratings over the past three months. With that comes an average RVPH stock price target of $5.75, representing a potential 1,271.01% upside for the shares.
