Why Alphatec Holdings Stock Plunged Today
Shares of Alphatec Holdings (NASDAQ: ATEC) plunged 21.2% on Wednesday after the spine surgery solutions company priced a public offering of common stock well below yesterday's closing price.
Early Tuesday Alphatec issued a press release announcing plans to raise $150 million through a public offering of common stock, while also granting the underwriters of the offering a 30-day option to purchase up to an additional $22.5 million of shares. All shares were to be sold by the company itself (and not by selling stakeholders), and the shares were to be offered pursuant to a shelf registration statement previously filed by the company.
In a subsequent press release late yesterday, however, Alphatec announced it had priced the offering of 14.3 million shares of common stock at a public offering price of $10.50 per share -- a more than 18% discount to yesterday's closing price of $12.82 per share. Alphatec also granted that 30-day option to the underwriters to purchase up to an additional 2.145 million shares at the offering price.
Source Fool.com
