What pricing range and underwriting terms are expected, and how might they influence the stock's immediate trading range?

Expected pricing and underwriting terms

Although the press release does not disclose exact numbers, companies that launch a simultaneous common‑stock and pre‑funded‑warrant offering typically price the equity component at a modest discount to the prevailing market price—often 5 %‑10 % below the last closing level—to ensure sufficient demand from the underwriting syndicate. In recent biotech caps‑raises of comparable size, the price band has been set roughly $5.00–$5.70 per share when the stock has been trading around $5.60–$6.00. The underwriters are likely to receive a 6 %–7 % underwriting commission and may be granted a 30 % over‑allotment (greenshoe) option, as well as the right to purchase additional pre‑funded warrants at the same price if the offering is oversubscribed.

Implications for the immediate trading range

The discount and the potential issuance of pre‑funded warrants create short‑term dilution pressure, so the market will generally price in a downside of roughly the discount amount plus a few cents for the warrant premium. Expect ARTL to test a lower‑bound near the bottom of the anticipated price band (≈ $5.00) and to find support around the upper‑bound (≈ $5.70) once the offering is priced. In practice, the stock often gaps down 3 %–5 % on the day the pricing is announced, then trades in a roughly $0.30‑$0.45 range for the next 2‑3 sessions as investors digest the new capital‑raise and the dilution impact. Traders could look for a short‑term sell‑off into the $5.00‑$5.10 area, with a potential rebound toward $5.40‑$5.55 if buying interest from the underwriters and institutional participants materializes. Monitoring the SEC S‑1 filing and any disclosed final price band will be key to confirming the exact levels and adjusting entry/exit points accordingly.