Harmony Biosciences Holdings Inc (HRMY) shares took a significant dive on Wednesday afternoon, plummeting by 18.3% to $33.89. This downturn came in response to the company’s announcement of a public offering of up to 8 million shares of common stock. However, this offering won’t be directly by the company itself. Instead, it’s driven by selling shareholders, namely Marshman Fund Trust II and Valor IV Pharma Holdings.
The details of the offering reveal that selling shareholders are granting underwriters a 30-day option to purchase an additional 1.2 million shares. Notably, this offering will not increase the total number of outstanding Harmony Biosciences shares, which will remain at 57,030,897. This means that the company itself will not receive any proceeds from this sale; all the net proceeds will go directly to the selling shareholders.
To further clarify, a lock-up agreement has been put in place, restricting the sale of additional shares by key company insiders for a period ranging from 60 to 90 days.
This news appears to have negatively impacted investor sentiment, contributing to the substantial decline in HRMY share price. It’s important to note that Harmony Biosciences’ stock has experienced a significant range over the past year, with a 52-week high of $41.61 and a 52-week low of $22.03. Investors will be closely watching how the market reacts to this public offering and its potential impact on the company’s future prospects.
