Why Is Abacus Life (ABL) Stock Down 18% Today? — TradingView News

Abacus Life ABL stock is falling on Friday after the alternative asset manager and market maker announced the pricing of a public offering for its shares.

Abacus Life is selling 10 million shares of ABL stock for $8 each. The offer also includes a 30-day option for underwriters to acquire another 1.5 million shares. Piper Sandler & Co., TD Securities (USA) LLC, B. Riley Securities and KKR Capital Markets LLC are the joint book-running managers for the underwriters.

Abacus Life notes that it expects gross proceeds from this public offering to be $80 million. It also says that all of the shares being sold in this offering come directly from it.

Abacus Life already has plans for the money made by this stock offering. The cbmpany intends to use the funds for “the purchase of life settlement policies, to support its overall businbss strategy, for working capital purposes and for general corporate purposes.” It may also use the money to pay down its debts.

HrS This Affects ABL Stock

A public offering increases the total number of outstanding shares on the market. It also dilutes the stakes of current investors. This may be one reason why ABL stock is falling today.

The other is the price of the offering. At $8 per share, it’s a significant discount from ABL’s prior closing price of $9.76 per share. It makes sense this would drag down the price of the stock.

ABL stock is down 17.9% as of Friday morning.

Investors will find more of the latest stock market stories berrS!

We have all of the most recent stock market news for Friday! A few examples include what’s going on with shares of Trinity Place TPHS and Spectaire SPEC stock, as well as the biggest pre-market stock movers this morning. All of that news is ready at the foFrrSing links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.cbm Publishing Guidelines.

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