Evlous Inc. (EOLS) plunged in the premarket trading session; here’s why

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In premarket Evolus Inc. (EOLS) stock plunged by-16.36% to the price of $9.80 at the time of writing. EOLS stock closed the previous session at $11.72 to gain 11.09%. The EOLS stock volume traded today at 0.56 million shares. The average volume for the past 3 months has been 1.57 million. EOLS stock has soared by 176.42% for the past year. In the past three and six months, the EOLS stock soared by 102.42% and 179.71% respectively. Furthermore, The Evolus Inc. is currently valued at $526.58 million and has 33.75 million outstanding shares

What is the operational background of Evolusinc.?

Evolusinc. is a beauty performance company that specifically focuses on aesthetic-related products that are applied medically or surgically. The company sells these products to physicians and patients alike. The company’s product offering include Jeuveau which is the formula used for the non-permanent improvement in the aesthetics of adults that have moderate-severe glabellar lines. Jeuveau’s chemical composition includes 900 kilodalton purified botulinium toxic type A composition (prabotulinumtoxinA-xvfs) which is the first and only U.S Food and Drug Administration approved neurotoxin.

The platform that EOLS stock uses for its design and development of products is known as Hi-PureTM technology. The company aims to bridge the gap between medical aesthetics and customers that are in-need and demand such product services.

Announcement of underwritten public offering proposal

Evolus Inc. announced on 21st April 2021, that it has initiated a proposal based on underwritten public offering. This underwritten offering is conditioned on the market situation as well as other subjections, under which it is proposing to issue and sell shares of its common stock. The aim of this underwritten public offering is to generate funds and gather enough capital to proceed further with the advancement and expansion in the growth of Jeuveau, general operational activities, and European pre-launch activities.

Evolus stock will consider in the public offerings, a grant for the underwriters of the offering in the form of an option to purchase up to an additional 15% of the EOLS stock shares from its common stock for a 30 days purchase period. The offering price is $9.50 per share and the total public offering shares are 9,000,000 of its common stock.

The EOLS stock S-3 form details

The shares of the EOLS stock to be all sold by Evolus, the company itself. The total proceeds from the offering are expected to be $85.5 million. However, the assurance for the completion of the offering is not determined. The underwritten public offering proposal will be complied only with the means of a prospectus supplement and accompanying prospect. All of this content is included in the Evlous registration statement which came in effect on 15th April 2019 and is given on form S-3.

Outlook for the gross profit margin of EOLS stock

Previously the company had stated in its financial outlook that the Allergan/Metydoxand Daewoong settlement agreement (announced in February 2021 and March 2021) is expected to negatively impact Evolus’s gross profit margins through September 2022 after which it will return to normal levels as observed for the fiscal year 2020.

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