Why Vascular Biogenics Ltd. Is Tanking Today
After the company released the pricing details of its just-announced common stock offering, shares of Vascular Biogenics (NASDAQ: VBLT), a clinical-stage biotech focused on cancer, fell 18% as of 11:40 a.m. EST on Friday.
Vascular Biogenics announced that it is raising $18.75 million from the sale of 2.5 million shares of common stock. That works out to a price of $7.50 per share. The offering is expected to dilute current shareholders by about 9%.
That $7.50 share price isn't sitting well with traders because the stock ended yesterday's trading session at $9. That hints that management had to offer a deep discount on its share price in order to attract enough demand.
Source: Fool.com
