PharmaCyte stock loses half its value, after tripling in two days led to relatively large stock offering

MW PharmaCyte stock loses half its value, after tripling in two days led to relatively large stock offering

Shares of PharmaCyte Biotech Inc. $(PMCB)$ lost more than half their value in premarket trading Thursday, after the biotechnology company took advantage of a more than tripling in its stock price over the past two days to sell a relatively large amount of shares. The company said it entered into agreement with institutional investors for a direct offering of of 14.0 million shares priced at-the-market. The effective price of the offering was $5.00 a share, which is 49.5% below Wednesday's closing price of $9.90, as the company raised $70 million. The company had 1.61 million shares outstanding as of Aug. 9. The company also issued to the investors warrants to buy up to 7.0 million shares of common stock. The stock plunged 58.5% in premarket trading Thursday, after rocketing 234.5% over the past two days, after the company said it moved to a Nasdaq listing after previously trading over the counter.

-Tomi Kilgore

$(END)$ Dow Jones Newswires

August 19, 2021 08:26 ET (12:26 GMT)

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