Another View of the Financing (and Reaction)Bottom line - think long term, not short. GLTA
It is very rare when a market 'likes' an equity deal. Dilution means sharing profits with more shareholders. But the drop really relates to the $7.85 price on the deal. With shares previously above $9, holders can sell into the market and buy cheaper new shares. This is very common when there is a large discount on the offering. The stock is also up a lot in the past year and the deal likely brought out some quick profit-taking sellers. We would not change the company thesis on this news and would even see it as a buying opportunity. QIPT will be paying down debt with the proceeds and setting up future growth. (5iResearch)