Puma Biotechnology Inc (NYSE: PBYI)
Puma Biotechnology is having an incredibly rough day today, and for good reason. News surrounding a second offering that was announced last night is concerning investors. Below, we’ll talk about the what, why, and what’s next surrounding PBYI.
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What’s Going On With PBYI
As mentioned above, Puma Biotechnology is having an incredibly bad day in the market. It all started in after-hours trading when the company announced a secondary offering, and the declines have continued since. Currently (1:26), PBYI is trading at $43.05 per share after a loss of $9.30 per share (18.23%).
Why Is This Happening
First and foremost, the company announced a secondary offering last night. Secondary offerings are always concerning to investors. Ultimately, this means that more shares are going out, which leads to dilution of current shares. Really, it’s all a mess.
Nonetheless, more bad news came out today. All over Twitter, there seems to be chatter that the secondary offering is going to be withdrawn. The reason… PBYI may not be able to build enough demand around the offer to make it worthwhile. In fact, even Adam Feurstein weighed in with a tweet of his own saying:
$PBYI -16%. I’m hearing weak investor demand for stock offering announced last night.
To see the original tweet, click here!
Moving forward, there are a ton of questions. First and foremost, investors are going to want to hear from the company with a confirmation or denial that the offering is being pulled off the table. Also, if the secondary offering does end up withdrawn, how will Puma Biotechnology raise the money that it needs? I’m sure there are other options, but if the company had a better option than a secondary offering, chances are that it would have been Plan A, not Plan B! As the story develops, these pieces of news will likely shape movement.
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