Why Point Biopharma Global Stock Got Crushed Today
Investors were not kind to Point Biopharma Global (NASDAQ: PNT) on Wednesday. The specialty biotech saw its share price crumble by more than 12% on the day, in sharp contrast to the marginal gain of the S&P 500 index. The major culprit was a new financing move announced by the company.
This morning, Point Biopharma priced the secondary share issue, which it announced the previous day that it was floating. The biotech is issuing 13.9 million shares of its common stock at $9 apiece. That's well under Tuesday's close of $10.18, hence the investor sell-off.
As is standard practice with secondary stock flotations, Point Biopharma has also granted the issue's underwriters a 30-day option to purchase additional shares. Collectively they will be able to buy up to nearly 2.09 million of these securities.
Source Fool.com
