$NVAX Novavax's stock plunges on heavy volume after public offering prices at deep discount



Shares of Novavax Inc. NVAX, -16.35% tumbled 16% in active premarket trade Thursday, after the biotechnology company said its relatively large public offering of stock priced at a deep discount. Volume topped 8.5 million shares before the open, enough to make the stock the most actively traded in the premarket. The company said it priced the public offering of 30.3 million shares, or about 8.8% of the shares outstanding, at $1.65 a share, which is 20.7% below Wednesday's closing price of $2.08. Novavax granted the underwriters of the offering options to buy an additional 4.5 million shares. The company plans to use the proceeds from the offering for general corporate purposes, including research and development expenditures. The offering is expected to close on or about April 16. The stock had soared 67.7% year to date through Wednesday, while the iShares Nasdaq Biotechnology ETF IBB, -0.35% had lost 1.4% and the S&P 500 SPX, -0.55% has slipped 1.2%.