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Why Is LogicMark (LGMK) Stock Down 36% Today?

Investorplace News 1/24/2023 William White
LGMK Stock. An image of two medical professionals performing a procedure on a patient © Provided by Investorplace News LGMK Stock. An image of two medical professionals performing a procedure on a patient Source: Roman Zaiets /

LogicMark (NASDAQ:LGMK) stock is falling on Tuesday after the medical device company priced a $5.2 million public offering of its shares.

The stock offering from LGMK stock includes 10,585,000 units and 3,440,000 pre-funded units. The pricing of the offering values each unit at $0.371. There are also different options for warrants depending on the units purchased.

In the case of the normal units, they include one share of LGMK stock, as well as a single warrant to purchase another share. Those warrants are immediately exercisable for $0.371. The warrants expire after five years.

When it comes to the pre-funded units, they include one share of LGMK stock and a warrant to purchase one and one-half shares of the stock. These units cost $0.001 less than the other units and the warrant in them is also immediately exercisable for $0.371. They also expire after five years.

Why This Has LGMK Stock Down

Investors typically don’t react well to a public stock offering for a couple of reasons. First, it reduces their stake in a company as outstanding shares increase. Second, the units are typically priced below the stock’s market value, which devalues their shares too.

As a result, heavy trading is pulling LGMK stock down on Tuesday. This has some 2 million shares of the company’s stock changing hands. That’s well above its daily average trading volume of 133,000 shares.

LGMK stock is down 36% as of Tuesday morning.

Investors seeking out more of the latest stock market news will want to stick around!

InvestorPlace is home to all of the hottest stock market news traders need to know about on Tuesday! A few examples include what’s happening with shares of Verb Technology (NASDAQ:VERB), Novo Integrated Sciences (NASDAQ:NVOS), and Axcella Health (NASDAQ:AXLA) stock today. You can find out more on these matters at the links below!

More Tuesday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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