Shares of Zomedica (ZOM -5.85%) surged 41% on Monday before pulling back after the market close.
Like many stocks that have caught the fancy of the increasingly popular WallStreetBets group on Reddit, Zomedica's share price has skyrocketed in recent weeks. At its closing price on Monday, the veterinary health company's stock was up a staggering 1,110% so far this year.
On Monday, Zomedica decided to take advantage of its torrid stock price to boost its cash reserves. The company said after the market close that it planned to raise roughly $25 million via the sale of nearly 13.2 million shares in a stock offering.
Zomedica priced its shares at $1.90, or about 30% below its closing price of $2.70 on Monday, and its stock price fell in kind. As of 5:55 p.m. EST today, Zomedica's shares were down more than 10% in after-hours trading.
Zomedica is gearing up for the upcoming launch of its Truforma diagnostic platform for dogs and cats, which is slated for March 30. Management is targeting a global pet diagnostics market that's projected to grow to $2.8 billion by 2024. Zomedica said that it will use the cash from its stock offering to fund the development of Truforma, as well as make milestone payments to its technology partners.