- The stock price of ADMA Biologics Inc (NASDAQ: ADMA) fell by over 8% pre-market today. This is why it happened.
The stock price of ADMA Biologics Inc (NASDAQ: ADMA) – an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing, and developing specialty plasma-derived biologics – fell by over 8% pre-market today. Investors are responding negatively to ADMA Biologics announcing that it intends to offer shares of its common stock for sale in an underwritten public offering.
The company intends to grant the underwriters of the offering a 30-day option to purchase up to an additional 15 percent of the number of shares of common stock sold in connection with the offering. And the proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
ADMA plans to use the net proceeds from this offering 1.) to advance the commercial sales of its U.S. Food and Drug Administration (FDA)-approved products through the procurement of raw materials for the manufacturing of BIVIGAM and ASCENIV 2.) to expand its plasma collection facility network 3.) to scale up the manufacturing capacity of its Boca Raton facility and to make continuous improvements in order to adhere to current Good Manufacturing Practice (cGMP) compliance 4.) to explore business development opportunities and 5.) for general corporate purposes and other capital expenditures.
Raymond James & Associates and Cantor Fitzgerald & Co. are acting as joint book-running managers of the proposed offering.
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