Why BioVie (BIVI) Stock Is Down Over 50% Today

BioVie Inc BIVI shares are trading lower by 56.1% to $1.23 during Tuesday’s session after the company announced it raised $3 million through a secondary offering of 1.96 million shares at $1.53 per share.

What To Know: BioVie announced the pricing of a public offering consisting of 1,960,800 shares of its common stock (or pre-funded warrants) and accompanying warrants to purchase the same number of shares. The combined offering price is $1.53 per share or warrant, with an exercise price of $1.53 per share, exercisable immediately for five years.

The company expects to raise approximately $3 million from the offering, before fees and expenses, and plans to use the proceeds for working capital and general corporate purposes.

The clinical-stage company anticipates that the offering will close on September 25, with ThinkEquity as the sole placement agent.

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Should I Sell My BIVI Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of BioVie have lost 96.43% year to date. This compares to the average annual return of -66.09%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

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