Iridex Corp: Drops on deep discounted stock offering

IRIDEX

14/09/2018 12:32

** Iridex Corp  IRIX.O  down ~16 pct at $6.50 premarket
after medical device maker prices its follow-on at a deep
discount
    ** Stock 2nd biggest faller on Nasdaq  .IXIC  before the
bell
    ** Co offers 1.67 mln shares at $6, a 23 pct discount to
stock's Thurs close, for gross raise of $10 mln  urn:newsml:reuters.com:*:nGNX9DgLn5
    ** Offering represents 20 pct of co's ~8.5 mln shares of
free float (TR data) and more than 100 days of trading volume
based on 90-DMA of ~16k shares
    ** Iridex says intends to use net proceeds for working
capital, general purposes, and may use portion for licensing or
acquiring intellectual property or technology for its products
    ** Stifel sole bookrunner, Roth Capital lead manager    
    ** IRIX shares are up ~2 pct this year, following a 46 pct
fall in 2017

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