Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Generex Biotechnology Corp
So what: There was confusion in the market this morning causing a wild swing in Generex's share price and halting trading for a period. Investors are also trying to digest news of the Global Medical purchase and a reverse stock split and rights offering by the company.
Now what: This was a confusing morning for investors trying to make sense of a lot of news. The Global Medical Direct stake will be 51% of the company, expecting $30 million in revenue and $8 million in net income. For the stock offering, as of now it appears the company will offer common stock and warrants to existing shareholders if a reverse stock split is approved on Friday.
Interested in more info on Generex Biotechnology? Add it to your watchlist here by clicking here.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.