Why Trevena Stock Is Plunging Today
Shares of Trevena (NASDAQ: TRVN), a biopharmaceutical company, were down by 16.2% as of 11:27 a.m. EDT on Wednesday, after the drugmaker announced the pricing of a public offering of common stock this morning. Investors aren't thrilled with the company's decision to dilute its existing shareholders.
Trevena intends to offer 21,739,131 shares of its common stock for $2.30 each. The company is also granting underwriters a 30-day option to purchase an additional 3,260,869 shares. Trevena's shares ended Tuesday's trading session at $2.74. As of this writing, the company's stock is priced at $2.30, exactly the same as its public offering. Trevena is aiming for $50 million in gross proceeds through this round of fundraising, which should close by Aug. 14.
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Source Fool.com
