GW Pharma Stock Falls After Announcing Offering

GW Pharmaceuticals (GWPH) fell almost 4% in after-hours trading after the British biotech company said it would sell $225 million of American Depositary Shares (ADSs) on the NASDAQ exchange in an underwritten U.S. public offering.

GW expects to grant the underwriters a 30-day option to purchase up to an additional $33.75 million of ADSs at the offering price.   The price for the offering has not been set. Goldman Sachs & Co. LLC, Morgan Stanley, BofA Merrill Lynch and Cowen are acting as joint book-running managers for the offering.

The company just reported its earnings on Monday in which it said that 2018 would be pivotal year. During the company’s earnings conference call, chief financial officer Scott Giacobello said, “We expect spending to continue at a similar rate for the first six months of fiscal year 2018 and therefore anticipate total cash outflows for the first half of the year in the range of 75 million to 95 million pound sterling or $100 million to $120 million based on today’s prevailing currency exchange rates. This includes capital expenditure of $10 million to $20 million related to manufacturing expansion. Thereafter, if Epidiolex is approved, we expect cash outflows to increase in preparation for product launch and we’ll update guidance at that time.”

Chief executive officer Justin Glover gave comments on the coming year by saying, “With our NDA now submitted to the FDA, the commercial and medical affairs teams are actively preparing for the potential U.S. approval and launch in 2018. Looking out through 2018, our key priorities include continued visibility at major U.S. medical congresses, and AES being one of the best examples of this initiative. Our company has a major presence at the AES meeting including the scientific exhibit this morning where we are showcasing 22 posters on CBD, a considerable body of clinical and scientific work.”

The stock closed at approximately $119 on Tuesday before the news was announced. The stock has been recovering from a 52-week low of $92 that it hit during the summer. The 52- week high was $136.

 

 

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


2 comments

  • DiAnna Nava

    December 21, 2017 at 11:50 pm

    I would like to invest… but I have no clue how.

    Reply

    • Debra Borchardt

      December 22, 2017 at 8:04 am

      There are many online trading websites where you can set up an account to buy stock. The key is to research each company before investing your hard earned money.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.