TCDA - Why Tricida Stock Is Jumping Today
Shares of Tricida (NASDAQ: TCDA) were jumping 11% higher as of 11:23 a.m. EST on Tuesday. The solid gain came after the company announced that it had entered into definitive agreements to sell stock and warrants that will generate gross proceeds of around $42 million.
It's par for the course for drugmakers to raise additional capital through issuing new shares and/or warrants. What's unusual is for a biotech stock to rise on the news instead of fall. Selling additional shares and warrants leads to dilution in the value of existing shares, which isn't good news for shareholders.
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Why Tricida Stock Is Jumping Today