ST. PAUL, Minn. (AP) -- Shares of Cardiovascular Systems Inc. fell about 2 percent Tuesday after the medical device developer said it priced a public offering at a discount to Monday's closing price.
The company said it expects to raise about $15 million, after fees and expenses, to pay for clinical trials, expand marketing and develop new products.
The offering's $9-per-share price was an 8.4 percent discount to the company's closing stock price of $9.83 Monday. News of a stock offering can weigh on a company's shares because having more shares outstanding makes existing stockholders' stakes less valuable. The St. Paul, Minn., company has about 18.2 million shares outstanding. It priced 1.78 million shares in the stock sale.
The company said the offering should close around May 25.
Leerink Swann LLC is the bank managing the offering.
Shares of Cardiovascular Systems dropped 22 cents to $9.61 in afternoon trading. The stock has traded between $7.26 and $16.25 over the last year.