Why iBio Stock Is Falling 55% Today

iBio Inc IBIO shares are trading lower by 55.00% to $0.72 Wednesday morning after the company announced pricing of a $3.5 million underwritten public offering.

What Else?

In connection with the offering, iBio has granted the underwriter a 30-day option to purchase 504,807 additional shares of its common stock and/or warrants to purchase up to 1,009,614 additional shares of its common stock at the public offering price, less underwriting discounts and commissions.

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The company intends to use the net proceeds from the offering primarily for operating costs, including for research and development and other trial preparation expenses in addition to working capital needs and for other general corporate purposes, which may include retention and severance payments to certain employees or former employees and principal payments pursuant to the terms of its amended Credit Agreement.

According to data from Benzinga Pro, iBio has a 52-week high of $18.75 and a 52-week low of $0.70.