Why Pulmonx Stock Is Crashing Today
Shares of Pulmonx (NASDAQ: LUNG) were crashing 53.7% lower as of 11:36 a.m. ET on Friday. The company announced its third-quarter results after the market closed on Thursday. However, Pulmonx's Q3 performance wasn't the primary culprit behind its stock plunging today.
Instead, investors reacted negatively to the company's regulatory filing to the U.S. Securities and Exchange Commission (SEC) on Thursday related to a planned securities offering. Pulmonx intends to sell up to $200 million of securities, potentially including stock, debt, and/or warrants, over time.
The massive sell-off of the healthcare stock was due to the scale of the anticipated dilution that could be on the way. Pulmonx's planned $200 million offering represents around 40% of the company's market cap before the SEC filing.
Source Fool.com
