TNON - Why Is T2 Biosystems (TTOO) Stock Down 23% Today?
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T2 Biosystems (NASDAQ:TTOO) stock continues to drop on Wednesday as investors react to news of a public stock offering.
The big news today is the company announcing additional details of its public stock offering. The company intends to sell 11,111,111 shares with warrants to purchase an additional 22,222,222 shares of TTOO stock.
T2 Biosystems is pricing these units at $1.08 per share. The warrants also have the same exercise price. They are exercisable immediately and expire five years after being issued. The company expects gross proceeds of $12 million from the public offering.
What This Means For TTOO Stock
With this public offering, T2 Biosystems is increasing its total number of outstanding shares. This dilutes current shareholders’ stakes in the company, which helps explain why the stock is falling today.
To go along with that, the offering price of $1.08 per share matches its prior closing price. However, the company’s stock dropped 22.9% on Tuesday after it announced the proposed public offering. Prior to that, shares closed out trading on Monday at $1.38 per share.
When a company prices shares below their market value, that often drops the price of the stock. While the offering price matches market value, it’s still not surprising that investors are dropping TTOO stock today.
TTOO stock is down 23.1% as of Wednesday morning.
Investors looking for more of the latest stock market news are in luck!
We’ve got all of the hottest stock news traders need to know about on Wednesday! A few examples include why shares of Credo Technology (NASDAQ:CRDO), Tenon Medical (NASDAQ:TNON), and TransCode Therapeutics (NASDAQ:RNAZ) stock are on the move today. You can read up on all that news at the following links!
More Wednesday Stock Market News
- Why Is Credo Technology (CRDO) Stock Down 45% Today?
- Why Is Tenon Medical (TNON) Stock Up 70% Today?
- Why Is TransCode Therapeutics (RNAZ) Stock Up 101% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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