Shares of biopharmaceutical company CorMedix (NASDAQ:CRMD) are down in double digits today after it announced an underwritten public offering of about 7.5 million common shares at an offer price of $4 per share as well as pre-funded warrants to acquire ~2.5 million common shares at $3.999 apiece per pre-funded warrant.
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CorMedix expects to realize $40 million in gross proceeds from the move and has also granted a 30-day option to underwriters to acquire an additional ~1.5 million shares at the offer price.
The offer is anticipated to close on or about July 3 and remains subject to closing conditions. The company plans to use the funds raised for general corporate activities, product commercialization as well as working capital requirements and research and development.
Overall, the Street has a $16.67 consensus price target on CorMedix alongside a Strong Buy consensus rating. Today’s price erosion comes after a nearly 34% surge in CorMedix shares over the past six months.
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