Why AquaBounty Technologies Stock Plunged Today
Shares of AquaBounty Technologies (NASDAQ: AQB) have plunged today, down by 11% as of 11:45 a.m. EST, after the company announced pricing of a secondary offering. The deal was priced at $8.50 per share, a considerable discount compared to yesterday's closing price of $10.73.
AquaBounty is selling 13 million shares of stock at that price, raising gross proceeds of approximately $110.5 million. The underwriters will have a standard 30-day option, known as a greenshoe, to buy 15% more shares (1.95 million).
It's not uncommon for companies to price secondary offerings at a discount to current market prices in order to incentivize investors to purchase stock through the deal instead of in the open market.
Source Fool.com
