Here's Why Apellis Pharmaceuticals Is Tumbling Today
Shares of Apellis Pharmaceuticals (NASDAQ: APLS) fell over 16% today after the company reported the details of a convertible debt offering. The business will offer $220 million in notes bearing 3.5% interest that come due in 2026 and can be repaid with cash or newly issued stock. The total offering could swell to $253 million if there's strong demand, although the business expects net proceeds of no more than $244.9 million after accounting for fees.
The offering will pad the company's balance sheet, which boasted $289 million in cash at the end of June. Considering that the stock has more than doubled since the beginning of 2019, management could have issued stock instead of debt but chose to raise cash in a more shareholder-friendly manner.
As of 12:03 p.m. EDT, the stock had settled to a 14.5% loss.
Source Fool.com
