Fortress Biotech shares plunge after highly dilutive offering

Mustang Bio

10/11/2023 13:44

** Shares of Fortress Biotech  FBIO.O  plunges 30.3% to
record low $1.45 premarket on equity raise
    ** Biopharma firm announces pricing of ~5.9 mln units at
$1.70 for $10 mln raise
    ** Each unit comprises one share (or pre-funded warrant) and
one warrant to buy an additional shares with exercise price of
$1.70
    ** Co has about 8.9 mln shares outstanding and ~6.1 mln
shares of public float, per LSEG data
    ** Fortress says intends to use net offering proceeds for
R&D, clinical trial expenditures, among other uses
    ** Roth Capital acting as placement agent for offering
    ** FBIO shares had already shed roughly 80% YTD through
Thurs close

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))