Why BioVie (BIVI) Stock Is Down Over 50% Today
Portfolio Pulse from Henry Khederian
BioVie Inc (NASDAQ:BIVI) shares plummeted over 50% after announcing a $3 million secondary offering at $1.53 per share. The offering aims to raise funds for working capital and general corporate purposes, with ThinkEquity as the sole placement agent.
September 24, 2024 | 4:20 pm
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BioVie Inc's stock dropped over 50% following the announcement of a $3 million secondary offering at $1.53 per share. The offering is expected to close on September 25, with proceeds used for working capital and general corporate purposes.
The significant drop in BioVie's stock price is directly linked to the announcement of a secondary offering, which often dilutes existing shares and can lead to a decrease in stock value. The offering price of $1.53 is close to the current trading price, indicating limited immediate upside potential. The funds raised are intended for working capital and general corporate purposes, which may not provide immediate value to shareholders.
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