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Investing.com -- Absci Corporation (NASDAQ:ABSI) stock fell 16% after the clinical-stage biopharmaceutical company priced a public offering of common stock at $3.00 per share, representing a significant discount to its previous closing price of $3.51.
The AI-focused drug development company announced it would sell 16,670,000 shares, with an option for underwriters to purchase up to an additional 2,500,500 shares on the same terms. The offering is expected to raise approximately $50 million in gross proceeds before deducting underwriting discounts, commissions, and offering expenses.
Absci plans to use the net proceeds to fund the advancement of its internally developed programs and continue investment in its Integrated Drug Creation™ platform. The remainder will go toward working capital and other general corporate purposes.
The pricing of the offering at $3.00 per share represents a 14.5% discount to Thursday’s closing price, which likely contributed to the stock’s decline. Such discounts are common in secondary offerings but often lead to share price pressure as investors adjust to the new valuation level.
Absci describes itself as a clinical-stage biopharmaceutical company that uses generative AI to design potential breakthrough therapeutics. The company’s Integrated Drug Creation platform combines AI with wet lab capabilities to develop novel drug candidates.
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