Why Collegium Pharmaceutical Shares Are Sinking Today
Shares of Collegium Pharmaceutical (NASDAQ: COLL) were sinking 13.6% as of 3:24 p.m. EST on Monday. The decline came after the drugmaker announced a $125 million proposed offering of senior convertible notes.
The bad news with Collegium's proposed offering is that it means that dilution in the value of its existing shares is on the way. The notes that the company plans to offer allow holders to convert them to shares that Collegium will have to issue.
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Source Fool.com
