Stock price drops significantly as company raises funds

  • Bluebird Bio shares fall 45% after stock offering
  • Stock price drops to $1.34 in pre-market trading
  • Company plans to raise $125 million in gross proceeds
  • Funds will be used to support commercialization and manufacturing of gene therapies

Shares of Bluebird Bio took a major hit, falling 45%, after the company announced its public offering of over 83.3 million shares at $1.50 each. The stock price dropped to $1.34 in pre-market trading, marking a significant decline. Bluebird Bio plans to raise $125 million in gross proceeds from the offering, with the funds being used to support the commercialization and manufacturing of its approved gene therapies. The offering is expected to close on Friday, with Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC serving as joint book-running managers.

Public Companies: Bluebird Bio (N/A)
Private Companies:
Key People: Emon Reiser (N/A)

Factuality Level: 8
Justification: The article provides factual information about Bluebird Bio’s public offering and the decline in its stock price. It includes details about the number of shares being offered, the offering price, and the underwriters involved. The article also mentions the company’s plans for the proceeds from the offering. However, it does not provide any analysis or context about the reasons for the decline in the stock price or the potential impact on the company’s future. Overall, the article is mostly factual but lacks in-depth analysis.

Noise Level: 3
Justification: The article provides relevant information about Bluebird Bio’s public offering and the impact on its stock price. It includes details about the number of shares, offering price, underwriters, and the intended use of the proceeds. However, it lacks analysis, scientific rigor, and actionable insights. The article stays on topic and supports its claims with specific information.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Bluebird Bio

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to a financial topic as it discusses the pricing and public offering of shares of Bluebird Bio. However, there is no mention of an extreme event or its impact.

Reported publicly: www.marketwatch.com