Compugen Ltd. (NASDAQ: CGEN) had been on fire, just recently challenging a new 52-week high that actually would be a decade high. The Israel-based biotech player is raising close to $60 million in a secondary offering, but at a punishing price to any new shareholders who bought into this week’s strength.
Compugen sold 6 million shares at $10.50 per share via Jefferies. The problem is that Compugen closed at $14.20 just on Thursday, so this offering came at a 26% discount to the prior close. This stock was trading at $11.50 a week ago.
The only good news for shareholders who bought this week is that shares are down “only” 18% at $11.60, and the low was $11.22 on Friday morning. At least all the shares are being sold by the company.
Compugen trades only about 250,000 shares per day, yet there had already been some 2.4 million shares after only the first 20 minutes of trading. The market cap is listed as $476 million, according to Yahoo! Finance.
Compugen listed its cash balance at $28.9 million at the end of 2013, and then there was another $4.5 million in short-term investments and $2.1 million in long-term investments.