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Why Alliqua Biomedical Inc (ALQA) Plunged Today

Alliqua Biomedical Inc (NASDAQ:ALQA) shares have plunged by 31% after the company announced the pricing of an underwritten public offering of 9.375 million shares at $0.40 a piece. Rodman & Renshaw was the underwriter of the offering and Alliqua Biomedical Inc (NASDAQ:ALQA) intends to use the net proceeds for general corporate and working capital purposes, along with for paying its monthly obligations under the company’s credit agreement with Perceptive Credit Opportunities Fund. Given the nano-cap size of the Alliqua’s market cap, along with its rather small average dollar volume, raising over $3 million likely needed a big discount for investors to commit, and Alliqua shares fell today because of that dynamic.

What Does The Smart Money Sentiment Say?

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In terms of smart money sentiment, not many elite funds owned Alliqua Biomedical Inc (NASDAQ:ALQA) at the end of the fourth quarter. Of the 742 top institutions that we track, 4 owned shares of Alliqua Biomedical Inc (NASDAQ:ALQA) at the end of the fourth quarter, unchanged from that of the previous quarter. Joseph Edelman‘s Perceptive Advisors kept its stake the same at 1.9 million shares while Hal Mintz‘s Sabby Capital trimmed its stake by 17% to 1.1 million shares.

The Bottom Line

Alliqua Biomedical Inc (NASDAQ:ALQA) shares are down due to a secondary offering.

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