Why BioXcel Therapeutics Stock Is Swooning Today

In response to the company giving the pricing details of a recently announced common stock offering, shares of BioXcel Therapeutics (NASDAQ: BTAI), a red-hot clinical-stage biotech that uses artificial intelligence to develop drugs, dropped 17% as of 11:30 a.m. EST on Thursday.

BioXcel announced on Wednesday that it was offering 2 million shares of its common stock to the public. The underwriters of the deal were also given a 30-day option to purchase up to an additional 300,000 shares.

The good news is that BioXcel was able to sell all 2 million shares. However, it was forced to discount the stock all the way down to $32 to attract enough buyers to fill the order. That's far below Wednesday's closing price of $41.14.

Source Fool.com