Savara Inc. (SVRA) shares are popping high on Monday’s pre-market. SVRA stock price pushed 30.57% to reach $2.05 per share. There is no particular activity by SVRA today to explain the rally, however, a few days ago Savara announced a public offering price for shares of its common stock which is expected to close today. SVRA stock was down by 1.26% with a $1.57 per share price at the previous closing. Let’s understand more about this rally.
Savara Inc is operating as an orphan lung disease company. SVRA stock is pushing in the pre-market though there is no news or press release by SVRA today, no analyst upgrades or high targeted price per share, no social media hype to explain the bullish sentiment. However, Savara announced the pricing of a public offering of the common stock on March 10, 2021, which is expected to close today.
Savara offered 45,785,828 shares of common stock at $1.45 per share price to the public. An aggregate of 32,175,172 shares of its common stock was offered by SVRA at a purchase price of $1.449 per warrant to some pre-existing investors. $113 million expected gross is estimated by Savara . Underwriters are privileged to buy up to 11,694,150 additional shares of its common stock at the public offering price. The offering is expected to close today i.e., 15th of March 2021.
On March 11, 2021, Jefferies Financial Group analyst S. Jeong estimated $0.04 earnings per share for the yearof SVRA.Back in November 2020, the target price was dropped to $3.00 from $6.00 by HC Wainwright with a buy rating and Evercore ISI issued outperform rating on SVRA stock.At the end of the third quarter, Savara (SVRA) had cash and cash equivalents of approximately $94.3 million and debt of $25 million approximately.
SVRA stock was red on the previous closing but now popping high in pre-market. The public price offering is expected to end today. Savara (SVRA) will use net proceeds from this offering to support clinical development, manufacturing, regulatory, commercial activities, general and administrative expenses.