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Investing.com -- ProFrac Holding Corp (NASDAQ:ACDC) stock plunged 32% after the company announced the pricing of its public offering of Class A common stock at $4.00 per share, a significant discount to its previous closing price of $6.32.
The oilfield services company is offering 18,750,000 shares of Class A common stock, which is expected to generate approximately $75 million in gross proceeds before deducting underwriting discounts and other expenses. ProFrac has also granted underwriters a 30-day option to purchase up to an additional $11.25 million of its Class A common stock.
According to the announcement, ProFrac intends to use the net proceeds to repay borrowings under its senior secured asset-based revolving credit agreement, pursue potential investment opportunities, and for working capital and general corporate purposes.
The offering, which is being managed by joint book-running managers J.P. Morgan Securities LLC and Piper Sandler & Co., is expected to close around August 14, 2025, subject to customary closing conditions.
The steep discount in the offering price compared to the stock’s previous close appears to be driving the significant sell-off in ProFrac shares, as the pricing suggests potential dilution for existing shareholders.
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