Biotech Values

[novicetrader]

TRXC..my understanding is the offering is priced @ $1 for the Shares & also $1 for the Warrants(A & B),separately.Meaning,if 1 whole unit(1 share+1 series A warrant+0.75 series B warrant)is exercised,it actually costs $3 bucks.So why the huge drop BELOW the offering price on friday to 0.69 cents? Is the market misreading it as if the $1 is for the combo of the share plus the warrants? Or am I the one misreading the math here?

On April 28, 2017, TransEnterix, Inc. (the “Company”) entered into an underwriting agreement (the “Underwriting Agreement”) with Stifel, Nicolaus & Company, Incorporated (the “Underwriter”), relating to an underwritten public offering of an aggregate of 24,900,000 units (the “Units”) each consisting of one share of the Company’s common stock, par value $0.001 per share (the “Common Stock”), one Series A warrant to purchase one share of Common Stock (the “Series A Warrants”) and one Series B warrant to purchase 0.75 shares of Common Stock (the “Series B Warrants,” together with the Series A Warrants, the “Warrants”). All of the Units are being sold by the Company. The offering price to the public is $1.00 per Unit. The Underwriters have agreed to purchase the Units from the Company pursuant to the Underwriting Agreement at a price of $0.94 per Unit.
Each Series A Warrant will have an initial exercise price of $1.00 per share and may be exercised at any time beginning on the date of issuance, and from time to time thereafter, through and including the first anniversary of the issuance date, unless terminated earlier as provided in the Series A Warrant. In the event the FDA provides clearance with respect to the Company’s Senhance System 510(k) application, which was filed with the FDA in April 2017, the holders of Series A Warrants will have 10 business days after written notice to exercise, in whole or in part, their Series A Warrants. Any Series A Warrants that remain unexercised after such 10 business day period will expire.
Each Series B Warrant will have an initial exercise price of $1.00 per share and may be exercised at any time beginning on the date of issuance and from time to time thereafter through and including the fifth anniversary of the issuance date..