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Investing.com -- Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) stock tumbled 23.4% after the late-stage pharmaceutical company announced its intention to offer shares of common stock and warrants in a public offering.
The company, which focuses on developing therapies for central nervous system, inflammatory, and cardiometabolic diseases, stated that all securities in the offering will be sold by Reviva. The offering remains subject to market conditions, with no guarantee regarding completion timing or final terms.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the offering. Reviva indicated that it plans to use the net proceeds to fund research and development activities as well as for working capital and general corporate purposes.
The announcement represents a typical capital raising effort that often leads to stock price declines due to potential dilution of existing shareholders’ stakes. Public offerings of additional shares and warrants increase the total number of outstanding securities, which can reduce the proportional ownership and earnings per share for current investors.
Reviva is developing therapies that target unmet medical needs across several disease categories, though the company did not provide specific updates on its clinical pipeline in this announcement.
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