Why Cardiovascular Systems Is Down Today

Shares of Cardiovascular Systems (NASDAQ: CSII) are down by 10.2% as of 1:00 p.m. EDT on Wednesday after the company announced the pricing of a public offering of common stock on Tuesday evening. Investors aren't thrilled about the prospect of the medical device company diluting existing shareholders.

Shares of Cardiovascular Systems were worth a little under $38.50 apiece at the close of market on Tuesday. However, the company announced a public offering of 3,676,471 shares of its common stock for $34 per share. Also, Cardiovascular Systems is giving underwriters the option to purchase an additional 551,470 shares within 30 days. The company is expecting to raise about $125 million from this round of fundraising, which Cardiovascular Systems expects to close on Jun. 12.

Cardiovascular Systems will use the proceeds from this public offering of common stock for "working capital and general corporate purposes," including international expansion, product development, working capital, and more.

Source Fool.com