Neptune Wellness Solutions, an organic food and beverage provider based in Laval, Quebec, is experiencing a significant decline in its share prices, reaching all-time lows on the Nasdaq exchange. The company recently announced a public offering of 1.8 million common shares and accompanying warrants, priced at $2.50 each.
According to Neptune Wellness, these warrants have an exercise price of $2.50 per share and can be immediately exercised. However, the current market conditions have led to a sharp decrease in share prices. As of 1:24 p.m. ET, the company's shares had fallen by 55% to $1.80. Earlier in the day, the stock hit its all-time low at $1.78, after opening at $2.34. It is noteworthy that the stock had closed at $4 per share on the previous day.
In an attempt to address this decline, certain existing warrants with exercise prices ranging from $13.20 to $3,150 per share will be amended by Neptune Wellness. The exercise prices will be reduced to $2.50 for these warrants, aiming to provide some relief to investors.
Neptune Wellness intends to utilize the proceeds from this offering for working capital purposes. While facing challenging market conditions, the company remains committed to maintaining its operations and striving for a successful future.
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