STRATA Skin Sciences stock falls after announcing $2.42M share offering

Published 03/09/2025, 14:44
© Reuters.

Investing.com -- STRATA Skin Sciences Inc (NASDAQ:SSKN) stock tumbled 17.7% Wednesday after the medical technology company announced a registered direct offering of common shares to raise approximately $2.42 million.

The company, which develops and markets products for treating dermatologic conditions, has entered into definitive securities purchase agreements with institutional investors for 1,097,547 shares at $2.204 per share. The offering is priced at-market under Nasdaq rules.

Ladenburg Thalmann & Co. Inc. is serving as the exclusive placement agent for the transaction, which is expected to close around September 4, 2025, pending customary closing conditions.

STRATA plans to use the proceeds for working capital and general corporate purposes. The share offering will dilute existing shareholders’ stakes, which typically puts downward pressure on stock prices as each existing share represents a smaller ownership percentage of the company after new shares are issued.

The dermatology-focused company’s stock reaction reflects investor concerns about dilution from the new share issuance, despite the capital infusion that will strengthen the company’s financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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