Can anything shut down the Gold rally?
Investing.com -- Enanta Pharmaceuticals (NASDAQ:ENTA) stock fell 9% in after-hours trading Tuesday following the company’s announcement of a proposed $50 million public offering of common stock.
The clinical-stage biotechnology company said it has commenced an underwritten public offering of its common stock, with all shares being offered by Enanta. The company also plans to grant underwriters a 30-day option to purchase up to an additional $7.5 million of shares at the public offering price, less underwriting discounts and commissions.
Enanta, which focuses on creating small molecule drugs for virology and immunology indications, noted that the proposed offering remains subject to market and other conditions. The company provided no assurance regarding whether or when the offering might be completed or the final terms.
The stock’s decline reflects typical market reaction to potential dilution from new share issuances, as secondary offerings often put downward pressure on share prices.
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