Why Green Thumb Industries Stock Is Jumping Today
Shares of Green Thumb Industries (OTC: GTBIF) were jumping 8.7% as of 11:11 a.m. EST on Tuesday. The big gain came after the multistate cannabis operator announced the U.S. sale of up to 10 million shares. Green Thumb already received and accepted an offer from an institutional investor to buy around 3.1 million shares. This sale, which will close today, will provide $100 million to the company.
In most cases, stock offerings cause a company's share price to fall rather than rise. That's because the value of existing shares is diluted by the new shares. So why didn't Green Thumb follow this typical pattern?
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Source Fool.com
