CBAY - Why CymaBay Therapeutics Stock Triumphed Again on Tuesday
2023-09-12 17:37:00 ET
The hot-streak biotech stock of the moment, CymaBay Therapeutics (NASDAQ: CBAY) , again rose in price on Tuesday. That extends the company's winning streak on the market following the impressive late-stage clinical results from a key investigative drug. The company's shares rose almost 3% higher on the day on news that it has upsized its coming stock issue.
After market hours on Monday, CymaBay said that it is expanding that issue to a total of $225 million worth of its common stock and warrants; previously, it had targeted gross proceeds of $150 million. That $225 million will consist of just over 12.5 million shares and, in lieu of common shares to certain investors that it did not identify, pre-funded warrants to purchase 583,771 shares.
The stock is to be sold in a public offering at a price of $17.13 per share; the warrants will cost one-tenth of a cent less. The offering's underwriters have been granted a fairly standard 30-day option to buy additional stock, in this case a collective amount of slightly more than 1.97 million shares.
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Why CymaBay Therapeutics Stock Triumphed Again on Tuesday