BYSI - Why BeyondSpring Is Plunging Today
Shares of BeyondSpring (NASDAQ: BYSI) -- a clinical-stage biopharmaceutical company -- are down by 18.1% as of 11:26 a.m. EDT on Friday, following the drugmaker's announcement of the pricing of a public offering of ordinary shares. With the company set to dilute existing shareholders, it isn't surprising that its stock plummeted today.
BeyondSpring first announced it was initiating a public offering of ordinary shares on Thursday. Today the company announced that it was selling 1,930,000 ordinary shares for $13 per share. BeyondSpring is giving underwriters a 30-day option to purchase an additional 289,500 shares. Also, the company said that it would sell 384,615 shares to an investment firm called Decheng Capital (and its affiliates) in a separate private offering. BeyondSpring expects the proceeds from this public offering to total about $30.1 million. Note that BeyondSpring's shares closed at about $16.60 on Thursday. At writing, the company's shares are down to $13.72 apiece.
Image source: Getty Images.