BioCardia Inc. (BCDA) shares took a significant dive, dropping 12% to $3.53 during Friday’s trading session. This decline followed the company’s announcement of an upsized public offering. The offering involves the issuance of 2.4 million shares of common stock or pre-funded warrants, along with warrants to purchase an additional 2.4 million shares.
Each share and accompanying warrant is priced at $3.00, with the offering projected to generate gross proceeds of $7.2 million. The warrants will be exercisable immediately at the same price and will expire in five years. The offering is anticipated to close on September 3, 2024, subject to customary closing conditions.
BioCardia plans to utilize the funds raised from the offering for working capital, general corporate purposes, and the advancement of its biotherapeutic initiatives.
For those interested in participating in the market for BioCardia, either through purchasing shares or exploring alternative investment strategies, there are several options available.
To buy shares, you will typically need to open a brokerage account. Numerous online platforms offer this service, and many allow for the purchase of ‘fractional shares,’ enabling you to invest smaller amounts without buying an entire share. For instance, if you only wish to invest $100 in BioCardia, which is currently trading at $3.60, you could purchase approximately 27.78 shares.
If you are interested in betting against the company’s performance, the process is more intricate. You would require access to an options trading platform or a broker who permits ‘short selling’ of shares. Short selling involves borrowing shares to sell them with the expectation of buying them back at a lower price later, profiting from the price decline.
Alternatively, if your broker offers options trading, you could purchase a ‘put option’ or sell a ‘call option’ at a strike price above the current trading price. Both strategies allow you to profit from a decrease in the share price.
According to data from Benzinga Pro, BCDA has a 52-week high of $23.25 and a 52-week low of $1.96.
