BYSI - BeyondSpring: The Drop From The Capital Raise Offers A Good Entry Point
As of 1:30 pm on October 25, BeyondSpring (NASDAQ:BYSI) was trading down 24% due to a public offering announced the day prior after close. The terms of the offering, announced this morning before market open, are for approximately 1.9M shares @ $13.50/share for gross proceeds of $25M. With the stock closing yesterday at a price of $16.77/share, this represents a discount of almost 20%, which explains the move downward today.
While dilution at such a discount is certainly always bad for existing shareholders, the decline in stock price offers new investors a