Athersys, Inc. (ATHX) Prices 19.8 Million Shares at $1.01; Shares Fall 30%


Athersys, Inc. (NASDAQ:ATHX) announced the pricing of its previously announced underwritten public offering of 19,802,000 shares of its common stock, par value $0.001 per share, at a price to the public of $1.01 per share, a 33% discount to yesterday’s closing price. Gross proceeds to Athersys from the offering are expected to be approximately $20.0 million, before deducting underwriting discounts, commissions and estimated offering expenses.

In connection with the offering, Athersys has granted the underwriters a 30-day option to purchase up to an additional 2,970,300 shares of Common Stock from Athersys at the offering price (less the underwriting discounts and commissions). The offering is expected to close on February 1, 2017, subject to customary closing conditions.

Athersys currently intends to use the net proceeds from the offering for working capital and general corporate purposes, including funding towards its Phase 3 MultiStemĀ® Administration for Stroke Treatment and Enhanced Recovery Study-2 (“MASTERS-2”) clinical study and its other ongoing clinical programs.

In wake of the public offering, shares of Athersys are crashing over 30% to $1.02 in pre-market trading. ATHX has a 1-year high of $2.90 and a 1-year low of $1.02. The stock’s 50-day moving average is $1.53 and its 200-day moving average is $1.85.

On the ratings front, Maxim analyst Jason Kolbert reiterated a Buy rating on ATHX, with a price target of $10, in a report issued on November 10. The current price target implies an upside of 558% from current levels. According to TipRanks.com, Kolbert has a yearly average loss of 16.8%, a 27% success rate, and is ranked #4317 out of 4378 analysts.

Athersys, Inc. is a biopharmaceutical company which engages in the discovery and development of therapies designed to extend and enhance the quality of human life. Its product development program, MultiStem, a proprietary off the shelf stem cell product used to treat indications in the inflammatory & immune, neurological and cardiovascular disease areas.Ā 

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