Cibus (CBUS) stock sank on Thursday after the agricultural biotechnology company announced the price of a public offering for its shares. The company will sell 15,714,285 shares of CBUS stock for $1.75 each. This will see it raise $27.5 million from the offering, which will be used to develop its weed management productivity traits in rice, working capital, and general corporate purposes.
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It makes sense that CBUS stock would drop alongside the public offering. The $1.75 price is well below the stock’s prior closing price of $2.36, and an increase in share count dilutes current investors’ stakes in the company.
All of this has CBUS stock down 31.78% in pre-market trading, extending a 15.11% year-to-date drop and a 78.84% fall over the past 12 months.
Is Cibus Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Cibus is Strong Buy, based on three Buy ratings over the past three months. With that comes an average CBUS stock price target of $22, representing a potential 832.2% upside for the shares.
