Why Menlo Therapeutics Stock Sank Today

Shares of Menlo Therapeutics (NASDAQ: MNLO) were sinking 10.4% as of 3:20 p.m. EDT on Friday after dropping as much as 14% earlier in the day. The decline came after the company announced the pricing of a stock offering Friday morning. 

Menlo plans to sell 27.05 million shares at $1.85 per share. The number of shares being offered represents nearly 20% of the total number of outstanding shares. The offering price reflects a 16% discount to the Thursday closing price for the biotech. 

Image source: Getty Images.

Continue reading

Source Fool.com