Why Bluebird Bio Shares Are Getting Crushed Wednesday

Bluebird Bio Inc BLUE shares are tanking Wednesday after the company announced the pricing of a $125 million public offering of common stock.

What Happened: Late Tuesday, Bluebird Bio announced the pricing of the proposed offering it announced earlier this week. The company plans to offer 83.33 million shares at a public offering price of $1.50 per share. Bluebird also granted the underwriters a 30-day option to purchase up to an additional 12.5 million shares.

The offering is expected to close on or about Dec. 22. Gross proceeds are expected to total $125 million.

Bluebird said it intends to use the proceeds to support commercialization and manufacturing for three approved gene therapies including ZYNTEGLO, SKYSONA and LYFGENIA, as well as to fund working capital and for other general corporate purposes.

Bluebird is a biotechnology company engaged in researching, developing and commercializing potentially curative gene therapies.

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BLUE Price Action: Bluebird Bio shares closed Tuesday down 20.3%. The stock was down 49% at $1.24 Wednesday morning, according to Benzinga Pro.

Photo: Pexels from Pixabay.