Shares of Sellas Life Sciences Group Inc. (SLS) plunged 36.9% toward a two-month low in premarket trading Friday, after the biopharmaceutical company focused on cancer treatments announced the launch of a public offering of common stock and warrants to buy stock. The selloff was enough to make the stock the leading premarket decliner on major U.S. exchanges.
The company indicated in filings late Thursday that it had not yet determined the number of shares or warrants it would be selling, or the expected price, but did say all of the securities would be sold by the company. Cantor Fitzgerald is acting as the sole book-running manager for the offering.
The offering comes after the stock had soared 56.4% year to date through Thursday, while the iShares Biotechnology exchange-traded fund (IBB) had lost 1.7% and the S&P 500 (SPX) had gained 4.5%. Investors were likely surprised by the announcement of the offering, as the stock had been steadily climbing since the beginning of the year.
The company did not provide any further details on the offering, leaving investors to speculate on the potential size and pricing of the offering. The uncertainty surrounding the offering has caused the stock to plunge in premarket trading. This could be a sign that investors are concerned about the potential dilution that could come from the offering.
The offering could also be a sign that the company is looking to raise capital to fund its operations or to expand its business. Sellas Life Sciences Group is a clinical-stage biopharmaceutical company focused on the development of novel cancer immunotherapies. The company is developing a number of treatments for various types of cancer, including acute myeloid leukemia and multiple myeloma.
The company has been making progress in its clinical trials and has a number of promising treatments in the pipeline. The offering could be a way for the company to raise the capital it needs to continue its research and development efforts.
The offering could also be a way for the company to capitalize on the recent surge in its stock price. The company’s stock has been steadily climbing since the beginning of the year and the offering could be a way for the company to take advantage of the current market conditions and generate some much-needed capital.
The offering could also be a sign that the company is looking to acquire another company or expand its business. The company could use the capital from the offering to make an acquisition or to invest in new technology or products.
Overall, the announcement of the offering has caused the stock to plunge in premarket trading. Investors are likely concerned about the potential dilution that could come from the offering, as well as the potential use of the capital raised. It remains to be seen how the offering will affect the company’s stock price in the long run, but investors should keep an eye on the company’s progress in the coming months.
