What happened 

Shares of Moderna (NASDAQ:MRNA) fell 10% on Tuesday after the biotechnology company said it would seek to raise more than $1.3 billion in cash via a public share offering. 

So what 

Moderna's stock sale comes soon after it announced positive results from its phase 1 study for its coronavirus vaccine candidate mRNA-1273. Moderna's shares popped 20% on Monday following the news.

Now, it appears that the biotech company is using its stock's gains to sell shares at a higher price. Moderna priced its stock offering at $76 per share, which is about 14% higher than where it closed on Friday. 

But the offering price is lower than the price at which Moderna's shares closed on Monday, and its stock price fell in kind.

A stock chart that rises then falls

Shares of Moderna fell on Tuesday after rising sharply on Monday. Image source: Getty Images.

Now what

Moderna intends to use the proceeds from the stock sale to fund the manufacturing of mRNA-1273 for distribution in the U.S. and international markets, pending regulatory approval. The company also said that any funds not needed for the production of mRNA-1273 will be used for the research and development of other drugs in its pipeline, as well as technology investments and general corporate purposes.