Why Celcuity Stock Is Crashing Today
Shares of Celcuity (NASDAQ: CELC) were crashing 19.3% lower as of 10:54 a.m. EDT on Tuesday. The big decline came after the biotechnology company announced the pricing of a secondary stock offering.
It's not surprising in the least that the biotech stock fell hard today. Celcuity plans to issue 2.25 million new shares at a price of $25 per share. Not coincidentally, the company's share price dropped to around that level.
Nor is it surprising that Celcuity decided to conduct a secondary stock offering. Its share price had soared nearly 240% prior to today. Companies like to issue new shares when their stocks are trading near highs because they're able to set the price tag at a higher level.
Source Fool.com
