Why Evogene Stock Is Tanking Today
Portfolio Pulse from Vuk Zdinjak
Evogene Ltd. (NASDAQ:EVGN) announced a registered direct offering of 8.5 million ordinary shares at a price of $1.00 per share, resulting in a 20% drop in its stock price. The offering, expected to close on July 19, 2023, is anticipated to generate gross proceeds of approximately $8.5 million. The funds will be used to develop product pipelines, enhance its computational predictive biology platform, and for working capital and general corporate purposes.
July 17, 2023 | 2:28 pm
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NEGATIVE IMPACT
Evogene's stock price dropped 20% following the announcement of a direct offering of 8.5 million shares at $1.00 each.
The announcement of the direct offering led to a significant drop in Evogene's stock price. This is likely due to the dilution of shares, which can decrease the value of existing shares. The funds raised will be used for corporate purposes, which could potentially lead to long-term growth, but the immediate impact on the stock price is negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100