Phillip Frost Plays

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IDI up 13.3% on $10M direct offering
Jul 24 2015, 10:29 ET | By: Jason Aycock, SA News Editor Contact this editor with comments or a news tip
IDI is up 13.3% after announcing a $10M direct offering to an institutional investor, along with a concurrent private placement of warrants.The company agreed to sell just over 1.28M shares at $7.81/share, along with warrants to purchase 0.5 share for each of those common shares at $10/share. The warrants are exercisable six months from issue and expire 36 months after issue.“We believe this financing serves to significantly accelerate the long-term development of the company,” says co-CEO Derek Dubner.Shares plummeted 48% on Tuesday after a Pump Stopper article said it had a 92% downside and was at risk of "total wipeout." Shares have regained 55.4% since then, but are still down 23.5% over the past five days.