Sunshine Biopharma Inc. (SBFM) shares took a hit in Tuesday's premarket, dropping about 18% after the company announced a $6 million public offering late Monday. The move likely spooked investors worried about dilution.
The offering consists of 12 million common units (or pre-funded units) priced at $0.50 each. Each unit includes one share of common stock (or a pre-funded warrant) plus two Series C warrants to buy additional shares at $0.50 apiece. Those Series C warrants are immediately exercisable and will expire in five years. The pre-funded warrants also kick in right away and stay valid until fully exercised.
Gross proceeds should hit around $6 million before fees, with the deal expected to close on or about May 19. Sunshine Biopharma plans to use the cash for general corporate purposes and working capital.
Beyond the financing, the company has a real business: it currently sells 60 generic prescription drugs in Canada and plans to launch 12 more by the end of 2026. It's also working on two proprietary drug programs—K1.1 mRNA, an mRNA-lipid nanoparticle candidate for liver cancer, and a PLpro protease inhibitor targeting SARS-related coronaviruses.
Still, the market's focus Tuesday was on the offering. Shares were trading at $0.41 in premarket, down 18.1% from Monday's close.
