Biotech company Summit Therapeutics (NASDAQ:SMMT) fell in Friday afternoon’s trading. It was down 25% at one point, which all ties back to the recent expiration of a $500 million rights offering.
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The rights offering in question ultimately led to a set of non-transferable subscription rights that would allow common stockholders the right to purchase from a new pool of stock. That pool had over 476 million shares in it, reports noted. Those interested could purchase for either $1.05 outright or whatever the volume weighted-average price was for the five days through the expiration date. The lesser price between the two conditions determined the actual price.
That’s actually a great deal, especially given current share prices. Further, one report from Zach Bristow targets Summit’s ivonescimab, noting it could have some real potential to serve as a monotherapy, a treatment by itself. This is particularly so in fighting certain diseases that currently call for much more complex responses.
The last five days of trading for Summit Therapeutics show a fairly volatile stock. Its value was trending upward for the first three days of the five-day period. However, February 2 showed a decline in progress. That is, until February 3 hit, and a plunge kicked in that wiped out all value gained in the preceding three days. Something of a rally followed, but the stock is still well off its highs from the last five days.
