Why Is Intelligent Bio Solutions Stock Tumbling Today?

Intelligent Bio Solutions Inc INBS shares are trading lower Monday after the company announced the exercise of previously issued warrants for $1.77 million in gross proceeds.

What Happened: Intelligent Bio Solutions announced an agreement with several current warrant holders to exercise certain existing Series E Warrants to purchase up to 606,064 shares of common stock that were issued in a public offering in October 2023.

The existing warrants have an exercise price of $2.9232 per share. The gross proceeds to the company are expected to be approximately $1.77 million. Intelligent Bio Solutions intends to use proceeds for working capital and general corporate purposes.

In consideration for the immediate exercise of existing warrants for cash, the company will grant holders new warrants at an exercise price of $4.50 per share with a term of five and a half years.

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Is INBS A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Intelligent Bio Solutions‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Intelligent Bio Solutions does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 17.32%, you'll need to buy a share of OFS Credit Co by April 18. Once done, you can expect to receive a nominal payout of $0.1 on April 30.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Intelligent Bio Solutions will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

INBS Price Action: Intelligent Bio Solutions shares were down 40% at $3.57 at the time of publication, according to Benzinga Pro.

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