Why BioVie (BIVI) Shares Are Down 40%

BioVie Inc BIVI shares are trading lower by 42% to $1.09 during Monday’s session. The company announced the pricing of its public offering, consisting of 21 million shares of common stock (or pre-funded warrants) and warrants for up to 10.5 million shares, at a combined price of $1.00 per share (or pre-funded warrant) and associated warrant.

The warrants have an exercise price of $1.50 per share and will be exercisable for five years. The offering is expected to yield approximately $21 million in gross proceeds for the company, before accounting for placement agent fees and offering expenses. The net proceeds will primarily be used for working capital and general corporate purposes.

The offering is set to close on March 6, pending customary closing conditions, with ThinkEquity acting as the sole placement agent.

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How To Buy BIVI Stock

By now you're likely curious about how to participate in the market for BioVie – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of BioVie, which is trading at $1.08 as of publishing time, $100 would buy you 92.59 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, BIVI has a 52-week high of $11.39 and a 52-week low of $0.89.