BLTE - Why Shares of Belite Bio Are Slumping Wednesday
2023-05-31 12:22:53 ET
Shares of Belite Bio (NASDAQ: BLTE) were down 38% Wednesday morning after the clinical-stage biopharmaceutical company said it planned to do an underwritten public stock offering. The company specializes on therapies to treat blindness, diabetes, and liver disease. The stock is down more than 47% to start the year, though it is up more than 4% since its initial public offering on April 29, 2022.
The biotech stock hit a new 52-week low of $14.22 on Wednesday morning after it said that it planned to raise $30 million in a dilutive public offering of 2 million American depository shares (ADS). The offer price is set at $15 per ADS and will expire five years from the issue date. It will have an exercise price of $18 per ADS.
The offering is expected to close around June 2. The dilutive effect of the offering makes the stock worth less to current investors.
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Why Shares of Belite Bio Are Slumping Wednesday