Why Evolus Stock Dived by Almost 19% Today

Cosmetic drug specialist Evolus (NASDAQ: EOLS) produced investor frowns on Thursday following its announcement of a dilutive secondary share issue. The stock closed down by 18.9%, recovering only slightly in after-hours trading.

Evolus is floating 9 million shares of its common stock at a price of $9.50 apiece. The underwriters of the issue have also been granted a 30-day option to buy up to an extra 1.35 million shares collectively. The company expects the issue to close on or about next Monday, April 26.

That $9.50 per share was well below Wednesday's closing stock price; the sell-off reduced the stock to roughly that level ($9.51).

Source Fool.com