Longboard Pharmaceuticals shares are trading lower after the company announced that it commenced a $150 million underwritten public offering and expects to grant the underwriters a 30-day option to purchase up to an additional $22.5 million of shares of voting common stock.
Portfolio Pulse from Benzinga Newsdesk
Longboard Pharmaceuticals (LBPH) shares dropped following the announcement of a $150 million underwritten public offering, with an additional $22.5 million option for underwriters. The offering dilutes current shareholders, leading to the stock price decline.
January 03, 2024 | 7:05 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Longboard Pharmaceuticals' stock is likely to face downward pressure in the short term due to the announced public offering, which typically results in dilution of existing shares.
Public offerings often lead to a decrease in a stock's price in the short term due to the dilution of existing shares. The market usually reacts negatively to the prospect of dilution, as it can decrease earnings per share and the value of existing shares. The size of the offering and the option for underwriters to purchase additional shares suggest a significant potential dilution for Longboard Pharmaceuticals.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100