Shares of RedHill Biopharma (NASDAQ: RDHL) were falling 12.5% lower as of 11:32 a.m. EST on Tuesday. The decline came after the specialty biopharmaceutical company announced that it was increasing the size of its previously announced public stock offering. RedHill now plans to offer nearly 3.2 million American depositary shares (ADSs) at a price of $7.84 per share. On Monday, the company said that it intended to offer close to 1.3 million ADSs at the same share price.
There’s good news and bad news with RedHill’s decision to increase the size of its public stock offering.