Here's Why Cerevel Therapeutics Stock Is Getting Hammered Today

Cerevel Therapeutics Holdings Inc CERE shares are trading lower after the company announced a proposed public offering of $250 million of common stock.

In connection with this offering, Cerevel expects to grant the underwriters a 30-day option to purchase up to an additional $37.5 million of shares of its common stock at the public offering price, less underwriting discounts and commissions.

What Else?

Cerevel intends to use the net proceeds from the offering of common stock and, if consummated, the concurrent offering of the notes:

• (i) to support the continued development of emraclidine, including to accelerate registration-enabling activities;
• (ii) to evaluate the potential of emraclidine in other populations, including Alzheimer's disease psychosis;
• (iii) to accelerate market development and pre-commercial planning activities for emraclidine and tavapadon;
• (iv) to advance the remainder of the programs in its pipeline, including darigabat, and its other promising earlier-stage programs, including CVL-354, its selective KORA
• (v) for working capital and other general corporate purposes, including to extend its cash runway.

According to data from Benzinga Pro, Cerevel Therapeutics has a 52-week high of $46.16 and a 52-week low of $19.86.