This Is Why CRISPR Therapeutics Stock Is Tumbling on Tuesday

Just a few dollars away from rekindling a budding recovery effort, shares of biotechnology outfit CRISPR Therapeutics (NASDAQ: CRSP) were instead upended today. As of 3:21 p.m. ET Tuesday this stock is down just over 12% on news that the organization is not only taking on new debt, but is doing so in a way that could eventually dilute the value of existing shareholders' stakes.Biotech start-up CRISPR Therapeutics made the announcement this morning. That is, it intends to sell $350 million worth of convertible notes to raise funds for "general corporate purposes." The notes in question will mature in early 2031, if they're not redeemed, repurchased, or converted into new shares of common stock in the meantime. The accredited buyer(s) also have the option to purchase an additional $52.5 million worth of this convertible debt.For perspective, CRISPR's current market cap stands at $5.0 billion, and as of the end of last year the company had $347.6 million in cash and cash-equivalents at its disposal. Its total liabilities were also $343.4 million, however, $149 million of which were current liabilities. The young biotech outfit also burned through $345 million in cash last year funding the continued development of its drug portfolio and pipeline, which is largely based on its gene-editing know-how.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool