That increase in price for COSM stock came alongside a couple of pieces of news, including a name change that saw the company switch from Cosmos Holdings to Cosmos Health. The company made this change to better align its name with its business focus.
Adding to that, Cosmos also announced a reverse stock split for COSM stock. That saw the company enact a 1-for-25 reverse stock split when markets opened on Friday.
What’s Dragging COSM Stock Down Today?
A couple of things are dragging down COSM right now. The first is that the company’s shares are coming off the high Cosmos experienced on Friday. This makes sense, as the massive rally was likely more than shares of COSM stock could maintain.
However, there’s something else worth noting. This morning, the company announced a registered direct offering of 2.82 million shares and warrants to purchase up to 2.82 million shares of COSM stock. The units are priced at $11.50 with each one containing one share of COSM stock and one warrant. The warrants have an exercise price of $11.50.
Investors typically don’t react well to these types of offerings. That’s due to them increasing the total outstanding shares of a given stock. That dilutes current shareholders’ stake in the company, which also explains the drop in price today.
COSM stock is down 57.5% as of Monday morning.
Investors looking for more of the hottest stock market news today are in the right place!
InvestorPlace has them covered with our breakdowns of Monday’s biggest stock stories. That includes what’s happening with shares of Viking Therapeutics (NASDAQ:VKTX), Aerojet Rocketdyne (NYSE:AJRD) and Hexo (NASDAQ:HEXO) stock today. You can read up on all that news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.