Aytu, KemPharm stocks plunge to pace Nasdaq decliners after share offerings
Shares of Aytu BioScience Inc. plummeted 33% and of KemPharm Inc. plunged 32% Friday, to pace the Nasdaq's decliners, as both specialty pharmaceutical companies announced relatively large public share offerings that priced at deep discounts. KemPharm offered 8.33 million shares, representing 52% of the shares outstanding, that priced at $3.00 a share, or 28% below Thursday's closing price of $4.18. Meanwhile, Aytu offered 457,007 shares of common stock, 8.34 million shares of preferred stock convertible into 8.34 million shares of common stock at a conversion price of $1.50 per share, and warrants to buy and additional 8 million shares of common stock at an exercise price of $1.50 a share. That price was 26% below Thursday's closing price of $2.02. Aytu had 1.80 million shares outstanding as of Aug. 31. KemPharm shares have now lost 56% over the past three months and Aytu's stock has dropped 75%, while the S&P 500 has gained 6.1%.
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