What was the cause?
Arqt Stock ,The shares of Arcutis Biotherapeutics ( ARQT 1.63 percent) are down by 14.3 percent at 12:00 p.m. (EDT) on Friday following the company announced the price of a public sale of its common stock. Investors usually react to stock sales through the sale of stocks of the business being offered so it’s not unexpected to observe Arcutis Biotherapeutics suffer the same situation after deciding to issue new shares to raise money.
What’s the question?
Arcutis Biotherapeutics will offer 4 million shares of its common stock at the price of $25 for each share. Arcutis Biotherapeutics is also offering underwriters a 30 day option to purchase 600,000 additional shares. Arcutis Biotherapeutics expects to collect net proceeds of $100 million from this deal, which is expected to end on October. 6. The company will also be selling 1.4 million of shares in its stock through an upcoming private sale. The company expects to earn 35 million in gross profits through the private offer. The shares of the company were trading yesterday at $27.62 per share. Today, Arcutis Biotherapeutics stock is down to $23.82 at the time of writing.
What do we do now?
Arcutis Biotherapeutics currently has no products available for sale. The second quarter of the year that ended on June. 30th, the business reported no revenues and an operating loss of $35.4 million. Additionally, Arcutis Biotherapeutics had $224 million in cash, cash equivalents at the end this quarter. The company is a healthcare provider has several products in the pipeline which include ARQ-151, which could be a cure for plaque psoriasis as well as Atopic dermatitis. It is currently in the third phase of testing and is the best-developed candidate. Arcutis Biotherapeutics will likely use the funds from the public offering of common stock to help fund research and development for ARQ-151 and various pipeline-related candidates.
Do you need to invest $1000 in Arcutis Biotherapeutics right now?
Before you look into Arcutis Biotherapeutics it is important to know this.
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