PDS Biotechnology Faces Investor Backlash Over Equity Offering

PDS Biotechnology Corp witnessed a sharp decline in its share price following the announcement of a new financing arrangement designed to bolster its cash reserves. The clinical-stage company disclosed a direct placement of shares and warrants, triggering a wave of investor selling despite the intended cash infusion.

The biopharmaceutical firm priced 5.8 million common shares at $0.91 per share, a transaction expected to generate approximately $5.3 million in immediate proceeds. Additionally, investors will receive warrants to purchase another 5.8 million shares at an exercise price of $1.00 each. If fully exercised, these warrants could provide an additional $5.8 million in funding.

Market reaction was swift and negative, with the equity shedding 2.8% of its value on Read more...