Zomedica stock tumbles on heavy volume after public stock offering upsized 7-fold ‘due to demand’

Shares of Zomedica Corp.
ZOM,
+41.36%
tumbled 17.0% in premarket trading Tuesday, after the veterinary health company’s common stock offering, that was upsized by nearly seven-fold, priced at a deep discount. Trading volume of 40.1 million shares made Zomedica’s stock the most actively traded ahead of the open. The company said overnight that the sole book-running manager for the offering, H.C. Wainwrite & Co. agreed to increase the size of the public offering “due to demand” to 91.3 million shares at a price of $1.90 to raise $173.5 million. The offering represented 16.2% of the 564.1 million shares outstanding as of Nov. 11, while the offering price was 29.6% below Monday’s closing price of $2.70. Originally late Monday, Zomedica had announced an offering of 13.16 million shares to raise $25.0 million. Zomedica’s upsized offering comes after the stock skyrocketed 1,070.9% year to date through Monday, compared with the S&P 500’s
SPX,
+0.74%
4.3% gain over the same time.