Why Dynavax Stock Is Nosediving Today
Shares of Dynavax Technologies (NASDAQ: DVAX) were nosediving 18.1% lower as of 11:42 a.m. EDT on Monday. The decline came after the company announced plans to offer $200 million in convertible senior notes due in 2026.
The key word to note in Dynavax's announcement is "convertible." The notes that the company plans to issue will be able to be converted into shares. That means the value of Dynavax's existing shares could be diluted. When investors hear about potential dilution, they often head for the hills and create downward pressure on share prices. That's almost certainly why the biotech stock fell today.
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Source Fool.com
