Olema Pharma’s Stock Offering Sends Shares Tumbling
14
3
BTCCSquare news:
Olema Pharmaceuticals faced immediate market backlash after announcing a public offering of common stock and pre-funded warrants. The clinical-stage biopharma saw its shares drop 6.9%-7.2% in after-hours trading as investors digested the dilution implications.
The offering structure includes a greenshoe provision allowing underwriters to purchase up to 15% additional shares. TD Cowen is managing the book-building process, with all proceeds flowing directly to the company rather than existing shareholders.
Biotech investors reacted swiftly to the capital raise announcement - a sector where dilution fears often outweigh growth prospects. The MOVE follows recent volatility in developmental-stage pharma stocks as risk appetite fluctuates.
By:
