Why BioVie (BIVI) Shares Are Down 40%
Portfolio Pulse from Henry Khederian
BioVie Inc (NASDAQ:BIVI) shares plummeted 42% to $1.09 after announcing a public offering of 21 million shares and warrants at $1.00 each, aiming to raise $21 million for working capital and general purposes. The offering, managed by ThinkEquity, is set to close on March 6.

March 04, 2024 | 2:57 pm
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BioVie Inc's stock plummeted following the announcement of a public offering at a price lower than the current trading price, aiming to raise $21 million.
The significant drop in BioVie Inc's stock price is directly related to the announcement of a public offering at a price lower than its current trading price. This dilutes the value of existing shares and signals to the market that the stock might be overvalued at its previous price. The offering is substantial in size relative to the company's market cap, and the proceeds are intended for general corporate purposes, which may not provide immediate returns to investors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100