CDLX - Why Cardlytics Stock Tanked by 33% Today
2024-03-26 18:41:08 ET
In one of its worst stock market trading sessions of all time, Cardlytics (NASDAQ: CDLX) stock really took it on the chin Tuesday. Investors aggressively sold out of the company, to the point where the digital advertising specialist's shares lost almost 33% of their value. A new capital-raising effort was the reason for the widespread discontent.
Before market open Tuesday, Cardlytics announced that it is floating $150 million worth of convertible senior notes that mature on April 1, 2029. The company also intends to grant the issue's underwriters an option to collectively buy up to an additional $22.5 million worth of the notes.
The notes will pay their interest semiannually until maturity, and if not converted. Cardlytics did not specify the interest rate, nor did it provide the conditions under which the notes can be converted by their owners -- likely one reason behind investors' sharply negative reaction.
For further details see:
Why Cardlytics Stock Tanked by 33% Today