Eledon Pharmaceuticals, Inc. (ELDN) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Eledon Pharmaceuticals, Inc. faces a considerable risk of diluting its shareholders’ equity following its recent Private Placement and potential future stock issuances. With over 24 million shares already outstanding, the initial closing of the Private Placement added approximately 8.7 million shares, along with warrants that could convert into an additional 21 million shares. If Eledon Pharmaceuticals chooses to issue more shares or warrants in subsequent closings, as contingent on achieving specific milestones, this could lead to further dilution. Consequently, the company’s stock price might experience significant downward pressure, complicating future capital-raising efforts and potentially altering the balance of power in terms of shareholder rights and privileges.
The average ELDN stock price target is $11.00, implying 433.98% upside potential.
To learn more about Eledon Pharmaceuticals, Inc.’s risk factors, click here.
