The stock price for TrovaGene Inc. was down over 20 percent by close of market July 14, following the company’s announcement that it would raise $7.1 million in a stock offering.
It’s not great news for TrovaGene’s investors, who run the risk of further dilution. The company, which is developing urine and blood tests for cancer, was nearly booted from the Nasdaq at the end of May, when TrovaGene’s stock price was dipping below $1 per share. To regain compliance with the Nasdaq’s rules, the company had to meet the closing bid price of $1 for 10 consecutive days. And TrovaGene’s stock did just that by July 6.
Now, the company’s stock price closed at $1.12 per share Friday afternoon.
The stock offering includes 6,191,500 shares of common stock, and warrants to purchase up to 4,643,626 shares of common stock. TrovaGene did not disclose how the $7.1 million would be used.