After the close, Acadia Pharmaceuticals announced the planned secondary raising of $150 million by selling 5.3 million shares. The timing is excellent, as the stock is just off it's all time high and dilution will be minimal.
3-6-14: The offering was oversubscribed so the end result is that the company is selling 6.4 million shares at $28.50 instead of the original 5.3 million share capital raise. The underwriters also have the right to acquire .96 million shares in the next 30 days. Baker Brothers Advisers bought $15 million worth of shares or 526 thousand shares, 8% of the offering.
Bottom Line: Good move by management to raise cash while the stock is near all time highs. The company should exit 2014 with a minimum of $290 million in cash for commercialization and future trials. Thank you for reading. We currently hold shares of ACAD.
3-6-14: The offering was oversubscribed so the end result is that the company is selling 6.4 million shares at $28.50 instead of the original 5.3 million share capital raise. The underwriters also have the right to acquire .96 million shares in the next 30 days. Baker Brothers Advisers bought $15 million worth of shares or 526 thousand shares, 8% of the offering.
Bottom Line: Good move by management to raise cash while the stock is near all time highs. The company should exit 2014 with a minimum of $290 million in cash for commercialization and future trials. Thank you for reading. We currently hold shares of ACAD.
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