Intellia Therapeutics Inc. (NASDAQ: NTLA) saw its shares tumble 5.83% in post-market trading on Monday, following the disclosure of a significant capital raise plan.
The biotech company entered into a sale agreement with Jefferies LLC for the offer and sale of up to $400 million of its common stock, according to an SEC filing. Such equity financing arrangements often lead to investor concerns over potential dilution of existing shareholders' stakes.
The move comes despite positive regulatory news earlier in the day regarding the removal of a clinical hold on a key gene therapy trial. The market's reaction to the financing announcement appears to have overshadowed the earlier development, driving the stock lower after the closing bell.
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