VirnetX Holding Corp. is not waiting to gather buying interest before selling its shares, as it filed for an at-the-market offering of up to $35 million worth of its common stock. The Internet security software company's stock tumbled 20% in premarket trade, putting it on track to open at the lowest level since Jan. 4, 2010. An at-the-money offering means the company can sell shares of common stock, through its broker Cowen & Co., at market prices. VirnetX intends to use the proceeds from the sale of shares for the development and marketing of its Gabriel product and other general corporate purposes. At Thursday's closing price of $3.73, the $35 million offering implies about 9.38 million shares, which represents about 18% of the shares outstanding. The stock has lost 32% year to date through Thursday, while the S&P 500 has slipped 1.1%.
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