BioVie Inc (NASDAQ: BIVI) saw its shares plummet by 42% to $1.09 during Monday’s trading session. The drop came after the company announced the pricing of a public offering, which included 21 million shares of common stock (or pre-funded warrants) and warrants for up to 10.5 million shares, at a combined price of $1.00 per share (or pre-funded warrant) and associated warrant.
The warrants have an exercise price of $1.50 per share and will be exercisable for five years. The offering is expected to generate approximately $21 million in gross proceeds for BioVie, before accounting for placement agent fees and offering expenses. The net proceeds from the offering will primarily be used for working capital and general corporate purposes.
The offering is set to close on March 6, pending customary closing conditions, with ThinkEquity acting as the sole placement agent.
For investors interested in buying BIVI stock, the process typically involves using a brokerage account. Many trading platforms allow investors to buy fractional shares, which means you can own portions of stock without purchasing an entire share. In the case of BioVie, trading at $1.08 at the time of writing, $100 would buy you 92.59 shares of stock.
On the other hand, if you are looking to bet against the company, the process is more complex. You would need access to an options trading platform or a broker who allows you to ‘go short’ a share of stock by lending you the shares to sell. Alternatively, if your broker permits options trading, you can buy a put option or sell a call option at a strike price above the current trading price to profit from a share price decline.
According to data from Benzinga Pro, BIVI has a 52-week high of $11.39 and a 52-week low of $0.89.
In conclusion, the recent public offering by BioVie has had a significant impact on the company’s stock price. Investors should carefully consider their options before deciding whether to buy or sell BIVI shares.
