News of stock offerings can often have an adverse effect on a company’s stocks and that is what seemed to have happened with the Progenity Inc (NASDAQ:PROG) stock on Monday.
The company announced yesterday that it had reached an agreement for the purpose of selling as much as $20 million worth of its shares to a range of institutional investors. However, the news did not go down well with shareholders and the Progenity stock suffered from a selloff. It ended the day with a decline of as much as 32% and it now remains to be seen if the stock can actually manage to make a recover over the coming days.
The company announced yesterday that as part of the registered direct offering it was going to offer as many as 13.3 million shares for $1.50 each. Progenity had also announced that it was going to use the proceeds from the offering for taking care of its business operations and also for further investments in research and developments.
At this point in time, it might be a good idea for investors to keep an eye on the stock and look for any signs of a recovery.
