Esperion Therapeutics (ESPR) Stock: Why The Price Substantially Dropped Today

By Amit Chowdhry ● Dec 3, 2021
  • The stock price of Esperion Therapeutics Inc (NASDAQ: ESPR) fell by over 30% pre-market today. This is why it happened.

The stock price of Esperion Therapeutics Inc (NASDAQ: ESPR) fell by over 30% pre-market today. Investors are responding negatively to Esperion announcing the pricing of its previously announced underwritten public offering of 32,142,858 shares of its common stock and short-term warrants to purchase up to an aggregate of 32,142,858 shares of common stock. 

Each share of common stock is being sold together with one short-term warrant to purchase one share of common stock at a combined public offering price of $7 per share of common stock and accompanying warrant, less the underwriting discounts and commissions. And the short-term warrants have an exercise price of $9.00 per share, are exercisable immediately, and will expire 2 years following the date of issuance.

Plus Esperion has granted the underwriter a 30-day option to purchase up to an additional 4,821,428 shares of common stock and/or warrants to purchase up to an additional 4,821,428 shares of common stock at the public offering price, less the underwriting discounts and commissions.

The gross proceeds from the offering to Esperion, before deducting underwriting discounts and commissions and other offering expenses, excluding any proceeds that may be received upon the exercise of the option to purchase additional securities and any exercise of the warrants to purchase common stock, are expected to be approximately $225 million. And Esperion intends to use the net proceeds from the offering to fund the ongoing commercialization efforts for NEXLETOL and NEXLIZET, research and clinical development of current or additional pipeline candidates, and general corporate purposes.

H.C. Wainwright & Co. is acting as sole book-running manager for the offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.