Shares of Bionano Genomics (NASDAQ:BNGO) fell on Wednesday after the genome-analysis company announced the pricing of its public stock offering. As of 12:30 p.m. EST, Bionano's stock price was down 13%.
Bionano expects to raise roughly $200 million via the sale of 33,333,350 shares of common stock at a price of $6 per share. It also gave underwriters the option to purchase (and subsequently sell) an additional 5 million shares at the same price. Bionano's stock sale is expected to close on Jan. 22.
The $6 public offering price was well below Bionano's closing price of $9.14 on Tuesday. The biotech's decision to sell stock more than 30% below its market price likely led some investors to take profits off the table by selling their own shares.
Despite today's decline, Bionano's stock price is up a staggering 1,370% in the past month. Investors have bid up the biotech's shares after a series of presentations by doctors and scientists highlighted the capabilities of Bionano's Saphyr optical genome mapping (OGM) system.
With its share price surging, Bionano's management has chosen to raise a total of approximately $300 million via stock sales in recent weeks.
Bionano is now on far more solid ground financially. And if Saphyr can deliver on its promise to improve healthcare outcomes for people with a host of genetic diseases, Bionano could deliver more gains to investors in the months and years ahead.