Why The LogicMark Stock Dropped 37.02% (LGMK)

By Amit Chowdhry ● Jan 24, 2023
  • The stock price of LogicMark (LGMK) fell by 37.02% in the most recent trading session. This is why.

The stock price of LogicMark (LGMK) fell by 37.02% in the most recent trading session.

Why: LogicMark announced the pricing of its above-market underwritten public offering of (i) 10,585,000 units, with each unit consisting of one share of common stock and one warrant to purchase one and one-half shares of common stock and (ii) 3,440,000 pre-funded units, with each pre-funded unit consisting of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one and one-half shares of common stock. Each unit is being sold at a public offering price of $0.371 and each pre-funded unit is being sold at the public offering price per unit, minus $0.001.

The warrants in the units and pre-funded units will be immediately exercisable at a price of $0.371 per share and will expire 5 years from the date of issuance. And the shares of common stock (or pre-funded warrants) and accompanying warrants can only be purchased together in this offering but will be issued separately and will be immediately separable upon issuance.

Proceeds: The gross proceeds, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $5.2 million. And LogicMark has also granted the underwriters an option to purchase, in any combination, an additional 1,587,750 shares of common stock, additional pre-funded warrants to purchase up to 516,000 shares of common stock, and/or additional warrants to purchase up to 3,155,625 shares of common stock, to cover over-allotments, if any.

Timing: The offering is expected to close on January 25, 2023, subject to customary closing conditions.

Manager: Maxim Group LLC is acting as sole book-running manager in connection with this offering.