Exact Sciences announced it would be selling 8.5 million shares of common stock in a public offering, up from a previous announcement yesterday of 7 million.
The company cited "market demand" as the reason for the upsizing in a statement released today.
The stock will be priced at $15.50 per share. Underwriters Jefferies and Baird will be granted the option to purchase up to 1,275,000 additional shares.
Exact Sciences, a Madison, WI-based cancer diagnostics company, will be using the proceeds from the sale to fund expansion of its' colorectal cancer test Cologuard's commercialization activities, development efforts, and general corporate purposes.
Also, the company reported 2016 second quarter earnings on Wednesday that beat expectations. Exact Sciences reported revenue of $21.2 million for the quarter, beating estimates of $18.54 million. The company also reported a loss of 46 cents per share, topping estimates of a 55 cent-loss.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, feeble growth in its earnings per share, generally disappointing historical performance in the stock itself and weak operating cash flow.
You can view the full analysis from the report here: EXAS