HTG Molecular Diagnostics Inc (NASDAQ: HTGM)
HTG Molecular Diagnostics is having an overwhelmingly rough time in the pre-market hours. The declines are the result of news that the company filed for a secondary public offering. As a result, investors are pushing the stock down, which prompted our partners at Trade Ideas to send an alert regarding the movement. At the moment (8:58), HTGM is trading at $8.17 per share after a loss of 14.45% thus far today.
HTGM Plans Secondary Offering
As mentioned above, HTG Molecular Diagnostics is having a rough time in the pre-market hours after filing for a secondary public offering. The offering is designed for the sale of shares or common stock with a total value of $75 million.
What’s The Big Deal?
With the stock falling, many newcomers to the investing world may be asking what the deal is. Why is it that HTGM is falling on the offering? Well, the answer is relatively simple. Ultimately, if you think of a company as a big pie with each share being a piece, it becomes easier to understand. You see, to offer more shares in a secondary public offering, each piece of the pie becomes a bit smaller in a process that is known as dilution. So, investors are essentially concerned about dilution cutting into the value of the shares that they already own.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HTGM. In particular, we’re interested in learning more about this offering, and how the company intends to use the funds that it raises from the offering. We’ll continue to follow the story closely and bring you the news as it breaks!
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