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Investing.com -- Rubico Inc. (NASDAQ:RUBI) stock tumbled 51.4% Wednesday after the shipping transportation services provider announced the pricing of a highly dilutive public offering.
The company priced an underwritten public offering of 12,315,270 units at $0.609 per unit, with each unit consisting of one common share and one Class A warrant to purchase an additional common share. The offering, which is expected to raise approximately $7.5 million in gross proceeds, represents significant dilution considering Rubico anticipates having only 5,297,366 common shares outstanding prior to the offering.
The warrants will expire one year from issuance but include provisions that could further dilute existing shareholders. The exercise price will be adjusted downward to 70% of the initial price on the fourth trading day after closing, and to 50% on the eighth trading day. Additionally, warrant holders can exchange each warrant for twice the number of shares through a zero-cash exercise option.
Maxim Group LLC is serving as the sole book-running manager for the offering, which is expected to close around November 6, 2025. The company has also granted underwriters a 45-day option to purchase up to an additional 1,847,290 common shares and/or warrants.
The significant share price decline reflects investor concerns about the substantial dilution to existing shareholders, as the offering more than triples the company’s outstanding share count.
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