Cibus Reported In Prospectus Supplement, It May, Sell Shares Of Class A Common Stock Having Offering Price Of Up To $80M From Time To Time
Portfolio Pulse from Charles Gross
Cibus has filed a prospectus supplement indicating it may sell shares of Class A common stock up to $80M from time to time, as per its 424B5 filing.
January 02, 2024 | 12:20 pm
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Cibus plans to potentially sell Class A common stock up to $80M, which could dilute current shareholders' equity and possibly depress the stock price in the short term.
The announcement of a potential sale of Class A common stock by Cibus up to $80M suggests an increase in equity, which typically dilutes the value of existing shares. This dilution often leads to a negative short-term reaction in the stock market as investors adjust to the increased share count and potential for lower earnings per share.
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