Why Arcutis Biotherapeutics Stock Is Plunging Today
Shares of Arcutis Biotherapeutics (NASDAQ: ARQT) are down by 14.3% as of 12:12 p.m. EDT on Friday, after the company announced the pricing of a public offering of common stock. Investors typically react to stock offerings by selling off shares of the company in question, and it isn't surprising to see Arcutis Biotherapeutics suffer the same fate after resorting to issuing new shares to raise funds.
Arcutis Biotherapeutics will offer 4 million shares of its common stock for $25 per share. The company is also granting underwriters a 30-day option to acquire an additional 600,000 shares. Arcutis Biotherapeutics expects to collect gross proceeds of $100 million through this transaction, which should close on Oct. 6. The company is also selling 1.4 million shares of its common stock in a concurrent private offering. The drugmaker expects to collect $35 million in gross proceeds through the private offering. Note that the company's shares closed yesterday's trading session at $27.62 apiece. Now, Arcutis Biotherapeutics stock is down to $23.82, as of this writing.
Image source: Getty Images.
Source Fool.com
