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Why Adamis Pharmaceuticals Corp (ADMP) Fell Sharply

Although the broader indexes are relatively unchanged, shares of Adamis Pharmaceuticals Corp (NASDAQ:ADMP) are down 19% after the company priced a spot secondary offering of 4.3 million shares at $3.50 a piece.

Adamis Pharmaceuticals Corp (NASDAQ:ADMP), which focused on developing and commercializing products in the therapeutic areas of respiratory disease and allergy, plans to use the proceeds for general corporate purposes, which may include, without limitation, expenditures relating to research, development and clinical trials relating to the company’s products and product candidates, capital expenditures, hiring additional personnel, acquisitions of new technologies or products, the repayment, refinancing, redemption or repurchase of existing or future indebtedness or capital stock and working capital.

Raymond James is the book runner, while Maxim Group LLC is a co-manager. As customary, Adamis has granted underwriters a 30 day option to buy an additional 15% of common stock offered.

What Does The Smart Money Sentiment Say?

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In terms of hedge fund activity, Michael Castor‘s Sio Capital holds a big position, with 4.9% of the float, according to the most recent 13F data. Citadel Investment Group has a small position, with a Call option worth 44,000 at the end of December.

The Bottom Line

Adamis Pharmaceuticals Corp (NASDAQ:ADMP) shares are deep in the red due to a secondary offering.

Disclosure:None

igorstevanovic/Shutterstock.com

igorstevanovic/Shutterstock.com