Shares of Corvus Pharmaceuticals (NASDAQ:CRVS) fell sharply in premarket trading on Wednesday, down about 9.9%, after the company disclosed plans for a $150 million stock offering.
The biopharmaceutical group did not release further information on the structure or pricing of the proposed issuance in its initial announcement.
Equity offerings are commonly viewed as dilutive for existing shareholders, and the prospect of increased share count often puts immediate pressure on a company’s stock price when such fundraising plans are made public.