Tonix Pharmaceuticals stock halted ahead of FDA approval news
Investing.com -- Redwire Corp (NYSE:RDW) stock fell 17.5% after the aerospace and defense technology solutions provider announced the pricing of its upsized public offering of common stock at $16.75 per share.
The company is offering 15,525,000 shares, which will raise approximately $260 million in gross proceeds. Redwire has also granted underwriters a 30-day option to purchase up to an additional 2,328,750 shares at the public offering price.
According to the announcement, Redwire plans to use the net proceeds for general corporate purposes, including funding growth initiatives. The company will also repurchase a portion of its convertible preferred stock and repay a seller note issued in connection with its acquisition of Edge Autonomy Intermediate Holdings, LLC.
The offering is expected to close on or about June 18, 2025, subject to customary closing conditions. J.P. Morgan, BofA Securities, and Morgan Stanley (NYSE:MS) are serving as lead bookrunning managers for the offering, while Texas Capital Securities, Truist Securities, and Roth Capital Partners (WA:CPAP) are acting as joint book-running managers.
The significant stock decline reflects the market’s reaction to the potential dilution effect of the new share issuance on existing shareholders, despite the company’s plans to reduce overall dilution through the repurchase of convertible preferred stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.