By Emon Reiser
Shares of Heritage Insurance Holdings tumbled after the company said it would price its previously announced underwritten public offering of 3.7 million shares at $6.75 each.
The stock decreased 14% to $6.35 in Friday morning trading. The stock is up 255% this year.
Tampa, Fla.-based Heritage on Thursday announced the launch of a primary offering of shares with the goal of using the funds for general corporate and operations purposes, and provide capital for growth initiatives. The offering, expected to close Tuesday, is expected to generate about $25 million in gross proceeds.
Heritage said Friday that in a private placement, Chief Executive Ernie Garateix; Paul Whiting, a director at the company; and Raymond Hyer, a current holder of about 13.5% of the company’s outstanding stock have collectively agreed to purchase 222,222 shares at the announced price.
JonesTrading Institutional Services LLC is the book-running manager for the offering. Stonybrook Capital and its affiliates are acting as the financial adviser.
Write to Emon Reiser at [email protected]
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