Zomedica Raises $173.5M At 30% Discount, Shares Plunge

Zomedica Corp (NYSE: ZOM) has sharply increased the size of the previously announced public offering to 91.3 million at $1.90 per share, raising gross proceeds of $173.5 million, compared to an earlier offering of mere 13 million shares for $25 million.
The offer price is about 30% below its last closing price of $2.70 on Monday. The offering is expected to close by February 11.
H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.
The company is gearing up for the upcoming launch of its Truforma diagnostic platform for dogs and cats, slated for March 30.
Zomedica said that it would use the cash from its stock offering to fund the development of Truforma and make milestone payments to its technology partners.
Price Action: ZOM stock cratered 16.3% at $2.26 in the premarket session on the last check Tuesday.