Why Curis (CRIS) Shares Are Nosediving Thursday
Portfolio Pulse from Henry Khederian
Curis, Inc. (NASDAQ:CRIS) shares dropped by 8.29% after the company announced a $15.1 million registered direct offering. The company plans to sell 18.4 million shares at 82 cents per share to existing investors. The proceeds will be used for research, development, working capital, and general corporate purposes. The offering is expected to close around July 10.
July 06, 2023 | 1:06 pm
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Curis, Inc. shares dropped after the announcement of a $15.1 million registered direct offering. The company plans to sell 18.4 million shares at 82 cents per share, which is expected to dilute existing shareholders' equity.
The announcement of a registered direct offering usually leads to a drop in the company's share price due to the dilution of existing shareholders' equity. In this case, Curis, Inc. is selling 18.4 million shares at 82 cents per share, which is lower than the current trading price. This could lead to a further drop in the share price in the short term.
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