Modular Medical shares fall 17.54% after-hours after pricing $4.68M offering at discount to previous close.

Modular Medical (MODD) fell 17.54% in after-hours trading following the announcement of a $4.68 million public offering of 12.17 million shares and warrants. The offering, priced at $0.77 per combined unit (equivalent to $0.38 per share and $0.01 per warrant), includes warrants exercisable at $0.45 per share, below the effective share price. The move, aimed at funding operations and capital expenditures, likely triggered investor concerns over equity dilution and reduced per-share value. The warrants’ immediate exercisability and the 15% over-allotment option further signaled potential future dilution, exacerbating bearish sentiment. The stock’s sharp decline reflects market skepticism about the company’s reliance on financing at a discount, aligning with the offering’s perceived negative implications for existing shareholders.