Why Core Labs Stock Dived by More Than 10% Today
Few investors wanted to experiment with owning Core Laboratories (NYSE: CLB) stock on Thursday. That's because the oil reservoir services company is digging for new financing, and those investors aren't happy about this. As a result, Core Labs' stock closed a bit more than 10% lower on the day.
Core Labs said Thursday that it had launched an at-the-market (ATM) stock offering. Under this initiative, the company will sell up to $60 million worth of its common stock to the public. It will be aided in this effort by Wells Fargo and Bank of America Securities, both of which are to operate under an equity distribution agreement with the company.
In discussing the utilization of its share of the proceeds, Core Labs used the typical stock-issuer boilerplate language citing "general corporate purposes." It added that these could include product/technology development, debt retirement, and possible acquisitions.
Source Fool.com
