How does the $2.50 offering price compare to recent trading levels and what immediate price impact can be expected upon closing?

Pricing vs. Recent Market Levels

The $2.50 per‑share price of the new public offering is a rough 7‑12 % discount to where Synergy CHC (SNYR) has been trading over the past week. The stock closed at $2.68 on Monday and has hovered between $2.60 and $2.80 since the start of the month, with $2.70 acting as the short‑term trend line and $2.55 serving as a modest support level. By pricing the issue below the current VWAP, the company is signalling a willingness to attract fresh capital, but the discount also creates an immediate arbitrage opportunity for the market.

Expected Immediate Impact at Close

When the offering settles on Wednesday, August 27, the closing price is likely to gravitate toward the $2.50‑$2.55 band. The dilution of 1.75 million shares (plus a potential 262,500‑share greenshoe) will pressure the price downward, while the market will absorb the new supply at roughly the offering price. Historical precedents for similar sized offerings on Nasdaq‑listed health‑care stocks suggest an initial 3‑5 % dip from the pre‑close level, followed by a brief stabilization as the market digests the additional liquidity. Traders could consider shorting the stock in the final hour of the session if it remains above $2.55, or entering a long position near $2.48–$2.50 to capture a potential bounce once the price finds the $2.45‑$2.48 support zone that historically anchored the stock after previous equity raises. Keep an eye on the greenshoe exercise – if underwriters fully exercise, further pressure could push the price toward the lower end of that range.