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ETNB.US

ETNB Unreasonable Upsized Shares Offering Case

On June 28, 2022, 89bio (NASDAQ: ETNB) shares dropped over 5% after the Company proposed an underwritten public offering of $75M of shares of its common stock, pre-funded warrants, and accompanying warrants to purchase shares of its common stock.

The next day, the firm priced its previously announced underwritten public offering by upsizing to $94.5 million, further diluting current shareholders, and seriously damaging them.

The offering was conducted at depressed price levels and it was upsized without the critical necessity for the Company's needs, rising questions about intentional cheap shares sale on behalf of affiliates.

Going back on May 11, 2022, 89bio reported that it had cash, cash equivalents, and short-term investments of $126.1 million. Based upon current projections, 89bio believed it has sufficient cash to fund operations into the second half of 2023.

Comparing the official Company's financial representations and further actual steps, Investors have all reasons to suspect the Company's management of gross violations, including financial misrepresentations, breach of fuduciary duties to shareholders and probably malpractice.
Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Investment Bank
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
28 June 2022
Collecting participants…
Created by Stan Vick, Scout

89bio Inc

89bio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. The company's lead p...

    Ticker
    ETNB.US
    ISIN
    US2825591033
    CIK
    1785173
    Sector
    Healthcare
    Industry
    Biotechnology
    Country
    USA
    Address
    142 Sansome Street, San Francisco, CA, United States, 94104