Penn National Gaming Looks to Raise $1 Billion
Penn National Gaming (NASDAQ: PENN) shares were down over 8% this morning after the company announced a public offering of 14 million shares. The move comes after Penn National stock had run up 658% over the last six months.
The move seems strategic, as shares have had such an extensive climb that it gives the gambling company an opportunity to bolster its cash position. Shares have recovered somewhat throughout the day and seem primed to hold onto the current range. In all, the 14 million shares have the potential to raise around $1 billion in capital. Penn National gaming has lost over $800 million through the first two quarters of the year. The company carried $1.26 billion in cash at the end of June. With an additional $1 billion capital raise, the casino company will have a strong cash position that can be used for the build-out of its partnership with Barstool Sports, as well as any other corporate activities.
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Source Fool.com
