Catalyst Biosciences Inc (CBIO) Drops on Secondary Offering

Published on April 7, 2017 at 10:29 am by Insider Monkey Team in Market Movers, News

Catalyst Biosciences Inc (NASDAQ:CBIO) shares are among today’s biggest losers, falling 24.9% in morning trade after the company announced the pricing of its $18 million underwritten public offering. Specifically, Catalyst Biosciences Inc (NASDAQ:CBIO)’s offering includes Class A units, with each unit consisting of one common stock share and a five year warrant to purchase one half of a common share with an exercise price of $5.5 per share. The class A unit is priced at $5 per unit. The offering also includes Class B units, which is priced at $1000 per unit with each unit comprised of one share of preferred stock, which is convertible into 200 shares of common stock for Catalyst Biosciences, and a warrant to purchase 100 shares of common stock, also with an exercise price of $5.50 per share.

Given the size of the offering, and Catalyst Biosciences’ small float, some investors likely wanted a lower price to justify buying in.

What Does The Smart Money Sentiment Say?

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Given that it’s a nano-sized company, no elite funds that we track owned shares of the Catalyst Biosciences at the end of 2016.

The Bottom Line

Catalyst Biosciences Inc (NASDAQ:CBIO) shares are deep in the red today due to a secondary offering. For more reading, check out ‘Most Addictive Drugs In the World‘.