Parnell Pharmaceuticals Holdings Ltd. (NASDAQ: PARN) saw its shares drop by over 10% early Thursday following the pricing of its secondary offering. The company announced the pricing of its offering of 2.55 million ordinary shares for a total of $4,207,500, or around $1.65 apiece.

Additionally, the company granted an overallotment option to purchase up to an aggregate of 382,500 additional ordinary shares at the public offering price, less underwriting discounts and commissions. The offering is expected to close on May 17.

The sole book-running manager, or underwriter, for this offering is Ladenburg Thaluman.

Parnell is a fully integrated, veterinary pharmaceutical company focused on developing, manufacturing and commercializing innovative animal health solutions. Parnell currently markets five products for companion animals and production animals in 14 countries and augments its pharmaceutical products with proprietary digital technologies –FETCH and mySYNCH.

These solutions are designed to enhance the quality of life and performance of animals and provide a differentiated value proposition to customers. Parnell also has a pipeline of seven drug products covering valuable therapeutic areas in orthopedics, dermatology, anesthesiology, nutraceuticals and metabolic disorders for companion animals as well as reproduction and mastitis for cattle.

Robert Joseph, president and CEO, commented:

We have previously communicated to investors that we would be undertaking capital management strategies intended to increase our share trading volume and to attract new strategic and institutional investors through an underwritten offering.  Assuming the closing of the offering, we are very pleased to have advanced both these objectives. Our capital management strategy also includes raising additional debt funding, which we believe we will complete this quarter.  We believe that these capital initiatives, combined with our revenue growth and business development prospects, place Parnell in a position to continue delivering on the guidance and milestones we have provided to investors.

So far in 2016, Parnell has underperformed the broad markets, with the stock down about 60%. Over the past 52 weeks, the stock is down roughly the same amount.

Shares of Parnell were trading down 13% at $1.69 Thursday morning, with a consensus analyst price target of $18.78 and a 52-week trading range of $1.34 to $5.98.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.