180 Life Sciences Corp (NASDAQ:ATNF) stock fell 25% following the company’s announcement of a sales agreement that could see up to $500 million in common stock sold.
The biopharmaceutical firm disclosed on August 13, 2025, that it had established an “at-the-market” offering program with Clear Street LLC serving as the sales agent. Under this arrangement, 180 Life Sciences can sell shares periodically, either through negotiated transactions or directly on the market.
The offering is being made under a prospectus supplement filed with the Securities and Exchange Commission, which supplements the company’s shelf registration statement declared effective on June 26, 2025.
Clear Street is authorized to sell the company’s stock on existing trading markets, including the primary exchange where 180 Life Sciences is listed. The potential size of the offering, relative to the company’s market capitalization, appears to be the main driver behind the sharp decline in share price.
At-the-market offerings allow firms to raise capital gradually at prevailing market prices, though they can exert downward pressure on the stock due to potential dilution of existing shareholders’ equity.