TL;DR: company announced stock offering yesterday AH when stock closed at $7.23 -> stock price closed 20% down today at $5.86 -> company cancels offering today at 7pm -> price recovers to $6.80 AH today. Seems extremely fishy to me; can't imagine this wasn't planned & corrupt.
Aratana Therapeutics ($PETX) cancels stock offering after shares plunge
Aratana announced a stock offering which featured an abnormal add-on to any stock offering announcement I've ever seen:
The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering
This was announced AH yesterday at roughly 4pm. Stock price subsequently dropped 18.95% today, falling from $7.23 to $5.86.
Then, the company announced at roughly 7pm today that they are cancelling the stock offering because "current market conditions are not conducive for an offering." Stock price then recovered about 10% to $6.80 AH today.
I can't believe this is legal. Is it only legal because of their wording in the offering announcement? Or is this just a "that's why I don't buy shitty biotech companies" lesson? Has anyone seen something like this before?
EDIT -- formatting
Submitted November 29, 2017 at 02:27AM by _Creatine_Shits http://ift.tt/2AgPhLM
