Cardiol Therapeutics Inc (NASDAQ:CRDL) shares are trading lower by 18.4% to $1.60 Wednesday morning after the company announced a $13.5 million public offering of 8,437,500 common shares priced at $1.60 per unit.

What Else: Cardiol Therapeutics says the gross proceeds will be approximately $13.5 million before underwriting discounts, commissions and other related expenses.

The company plans to use the net proceeds from the offering to advance the clinical development of its lead drug candidate, CardiolRx, which is being investigated for the treatment of recurrent pericarditis, a cardiovascular condition. Additionally, the funds will support general administrative expenses, working capital and other corporate purposes.

Canaccord Genuity is serving as the sole bookrunner for the offering, overseeing the distribution of the shares.

Read Also: Google Cries Foul As DOJ Moves To Break Up Search Giant, Calls Recommendations 'Radical' As Antitrust Ruling Aims To Limit Its Search Market Monopoly

Should I Sell My CRDL Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Cardiol Therapeutics have gained 68.09% year to date. This compares to the average annual return of -16.86%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

CRDL has a 52-week high of $3.12 and a 52-week low of $0.66.