NEW YORK (AP) -- Shares of CAS Medical Systems Inc. tumbled Wednesday after the medical device maker priced its underwritten public offering of 5.2 million shares of its common stock at a significant discount.
Branford, Conn.-based CAS said it plans to sell the shares of $1.25 each, which represents a nearly 22 percent discount to the company's Tuesday closing stock price.
CAS shares fell 15 cents, or 9.5 percent, to $1.43 in morning trading, after trading as low as $1.35 shortly after the opening bell.
The sale is expected to result in gross proceeds of $6.5 million, which CAS said it plans to use for general corporate purposes.
Northland Securities Inc. is the offering's sole underwriter.