ChemoCentryx Inc (NASDAQ: CCXI) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it will not be moving forward with a previously announced public offering of common stock. With the dilutive offering off of the table, investors are excited and pushing the stock toward the top. Today, we’ll talk about:
- The news;
- what we’re seeing from CCXI; and
- what we’ll be watching for with regard to the stock ahead.
CCXI Will Not Move Forward With Public Offering
As mentioned above, ChemoCentryx is having an incredibly strong start to the trading session this morning after the company announced that it will not continue forward with a public offering of common stock that it announced on Wednesday, September 26, 2018.
In the release, CCXI said that it is cancelling the offering as culmination of terms representing the best interest of stockholders can’t be achieved at the current time. Of course, this is great news for investors. After all, a public offering of common stock adds more slices to a pie that’s the same size, taking value from everyone that was already involved. So, the cancellation of the offering means that CCXI shares will not be diluted and value is not being taken from those holding the shares.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of ChemoCentryx, the news proved to be overwhelmingly positive. With dilution now off the table, at least for the time being, investors will be able to hold onto the value in the shares they own. So, it comes as no surprise that excited investors are sending the stock screaming for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:21), CCXI is trading at $12.61 per share after a gain of $1.80 per share or 16.65% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CCXI. In particular, we’re interested in following the continued development of CCX-168 as the candidate is showing some serious promise. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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