Why Tellurian Stock Is Down 27% Today After Surging 55% Yesterday
Shares of LNG export start-up Tellurian (NASDAQ: TELL) are falling sharply today, down 26.6% at 12:10 p.m. EDT, after a huge day yesterday that saw shares close up almost 55%. While Tuesday saw investors rushing to buy following news that a major prospective investor in its Driftwood LNG export facility was coming back on board, Wednesday's sell-off is the result of the company saying it would issue 35 million new shares, and sell them in a private placement at a price far below Tuesday's closing price.
The massive collapse in energy markets due to the coronavirus pandemic this year has had a major impact on Tellurian. The company, which is still in the development and capital-raising phase of its plans, is counting on raising some $30 billion in joint-venture and debt capital to build Driftwood and associated pipelines.
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Source Fool.com