Shares of Tyme Technologies (NASDAQ: TYME) were jumping 19.5% as of 11:45 a.m. EST on Tuesday. The solid gain came after the biotech announced the close of a public stock offering of 40 million shares.
It’s typical for biotechs to sink after announcing stock offerings. And that’s exactly what happened with Tyme Technologies stock last week. These declines make sense because the value of existing shares is diluted when more shares are issued.