Here's Why Ziopharm Oncology Fell as Much as 14.0% Today
Shares of Ziopharm Oncology (NASDAQ: ZIOP) fell 14% today after the company announced and priced a public stock offering. The business will sell up to 32 million shares of common stock at $3.25 apiece, which could generate gross proceeds of up to $104 million.
The fundraising efforts will support a balance sheet that held about $88 million in cash at the end of September. However, Ziopharm is a prerevenue company that reported an operating loss of $42 million in the first nine months of 2019, which means it will continue to burn cash for the foreseeable future.
As of 10:37 a.m. EST, the pharma stock had settled to a 13.3% loss.
Source Fool.com
