Shares of Quantum-Si Inc. (QSI) plummeted 5.13% in Monday's intraday trading session, largely driven by the biotech company's announcement of a $50 million share offering at a significant discount to raise funds.
On Friday, Quantum-Si priced a $50 million registered direct offering, selling approximately 15.6 million shares to institutional investors at $3.20 per share. This represented a 25.4% discount to the stock's previous closing price, leading to substantial dilution for existing shareholders.
The company plans to use the proceeds from the discounted share sale for working capital and general corporate purposes. While raising funds is essential for growth and operations, such equity offerings typically put downward pressure on a stock's price in the short term due to the increase in share supply and ownership dilution.