Catalyst Biosciences Inc (NASDAQ:CBIO) shares are among today’s biggest losers, falling 24.9% in morning trade after the company announced the pricing of its $18 million underwritten public offering. Specifically, Catalyst Biosciences Inc (NASDAQ:CBIO)’s offering includes Class A units, with each unit consisting of one common stock share and a five year warrant to purchase one half of a common share with an exercise price of $5.5 per share. The class A unit is priced at $5 per unit. The offering also includes Class B units, which is priced at $1000 per unit with each unit comprised of one share of preferred stock, which is convertible into 200 shares of common stock for Catalyst Biosciences, and a warrant to purchase 100 shares of common stock, also with an exercise price of $5.50 per share.
Given the size of the offering, and Catalyst Biosciences’ small float, some investors likely wanted a lower price to justify buying in.
What Does The Smart Money Sentiment Say?
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).
Given that it’s a nano-sized company, no elite funds that we track owned shares of the Catalyst Biosciences at the end of 2016.
The Bottom Line
Catalyst Biosciences Inc (NASDAQ:CBIO) shares are deep in the red today due to a secondary offering. For more reading, check out ‘Most Addictive Drugs In the World‘.