Gritstone Bio (NASDAQ: GRTS ) stock is falling on Tuesday after the clinical-stage biotechnology company announced the pricing of an underwritten public offering for its shares. This public offering has the company selling 8,333,333 shares of GRTS stock for $1.50 each. These shares also come with warrants to purchase another 8,333,333 shares of GRTS stock. The exercise price for the warrants is $1.65 per share. In addition to this, certain investors are allowed to purchase pre-funded warrants instead of GRTS stock. This includes warrants that can be exchanged for 13,334,222 shares of the company’s stock. The price of these is also $1.65 each. Gritstone Bio is expecting $32.5 million in gross proceeds from this public offering. It doesn’t say what it plans to do with the funds from the offering. We do know that TD Cowen and Evercore ISI are the joint book-running managers for the offering. How This Affects GRTS Stock A public offering increases the total number of shares on the market. Doing this dilutes the stakes of current stockholders. That’s one reason why GRTS stock is down today. The other is the price of shares in the offering. This price is a significant discount over the prior closing price of $2.35 per share for GRTS stock. It makes sense that GRTS shares would fall in value alongside this offering. GRTS stock is down 43.8% as of Tuesday morning. That comes with 1.9 million shares traded, as compared to a daily average of roughly 2.2 million shares. There are more stock market stories ready below! We have all of the hottest stock market news available on Tuesday! That includes what’s going on with Acorda Therapeutics (NASDAQ: ACOR ), Kidpik (NASDAQ: PIK ) and XTI Aerospace (NASDAQ: XTIA ) stock today. All of that info is available at the following links! More Tuesday Stock Market News Why Is Acorda Therapeutics (ACOR) Stock Down 72% Today? Why Is Kidpik (PIK) Stock Up 38% Today? Why Is XTI Aerospace (XTIA) Stock Up 89% Today? On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .