Aurinia Pharmaceuticals Inc (NASDAQ: AUPH) is trading on gains of more than 7% this morning after announcing the pricing of a public offering of common stock. In general, offerings lead to tremendous declines. Nonetheless, there’s good reason for the gains here.
AUPH Announces The Pricing Of A Public Offering
Aurinia Pharmaceuticals issued a press release late yesterday, announcing the pricing of a public offering of common stock. In the release, the company said it will be offering 11,115,165 shares of common stock at a price of $15.00 per share.
Based on this price, AUPH expects to generate $166.7 million in gross proceeds before deducting underwriting discounts and commissions and other estimated offering expenses.
It’s also worth mentioning that the company has granted the underwriters an option that is exercisable in whole or in part. This option gives the underwriters the option to purchase an additional 1,667,274 shares of common stock at the offering price for a period of 30 days.
As is always the case, AUPH said that the offering is subect to customary closing conditions.
Importanty, Aurinia Pharmaceuticals plans on using the proceeds from the transaction for pre-commercialization and launch activities. The company will also use the funds for working capital and general corporate purposes.
Why The Stock Is Rocketing!
While offerings tend to send stocks tumbling, in this case, Aurinia Pharmacueticals is finding its way to the top, why? Well, there are a few reasons:
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