Milestone Pharmaceuticals Inc. (NASDAQ:MIST) saw its stock plunge 30% following the announcement of a planned underwritten public offering involving common shares and warrants.
The biopharma firm revealed it intends to issue common stock alongside Series A and Series B warrants to buy additional shares, as well as pre-funded warrants paired with warrants for select investors. All securities in the deal will be sold by Milestone (WA: MMD), but the company cautioned that the offering remains subject to market conditions and its final terms and completion are not guaranteed.
Proceeds raised will be combined with current cash reserves to support the clinical development and commercial rollout of etripamil, Milestone’s lead treatment candidate for paroxysmal supraventricular tachycardia (PSVT). Additional funding will also be allocated for working capital and general corporate needs.
Joint book-running managers for the offering include TD Cowen, Piper Sandler & Co., and Wells Fargo Securities, with H.C. Wainwright & Co. serving as lead manager.
The sharp sell-off reflects the typical investor response to public offerings, which can dilute existing shareholders’ stakes.
Milestone Pharmaceuticals stock price
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