AquaBounty Technologies Inc (NASDAQ:AQB) Stock Set To Open Lower After The News

Those who are looking into the premarket action in the market today might have noticed that the AquaBounty Technologies Inc (NASDAQ:AQB) stock has been one of the notable laggards.

Market Stats

On Thursday, AQB stock slumped 5.45% at $3.1200 with more than 3.37 million shares, compared to its average volume of 698.22K shares. The stock has moved within a range of $3.0601 – 3.4100 after opening the trade at $3.2700.

Proposed Public Offering

At the time of writing, the stock has recorded a decline of as much as 21%. In this context, it might be the right time for investors to look into the announcement made by the company on Thursday. The stock is going through a selloff after the company announced that it was going to be have an underwritten public offering of as many as 11,200,000 shares of the AquaBounty common stock.

Such announcements can often lead to selloffs due to the fears associated with further dilution of the common stock. In addition to that offering of common shares, the selling stock holders, Third Security, is also going to be provided a 30 day option within which it would be able to pick up an additional 1,680,000 shares of the AquaBounty common stock.

In this regard, it is also necessary to note that the proceeds from the sale are not going to be received by AquaBounty and that is perhaps another factor that may have led to the selloff.

Traders Corner

AQB stock is trading below the 20-Day and 50-Day Moving averages of $3.77 and $3.97 respectively. However, the stock is trading above the 200-Day moving average of $5.42. The stock is down 21% in the past month.