Why Clarivate Stock Dropped on Wednesday : vimarsana.com

Why Clarivate Stock Dropped on Wednesday


Author Bio
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
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What happened
Shares of
Clarivate (NYSE:CLVT) dropped by as much as 15% today after the company announced a pair of proposed stock offerings. The deals will be dilutive to existing shareholders. As of 11:30 a.m. EDT, the stock had partially recovered but was still down 10%.
So what
Clarivate, a technology company that specializes in analytics that went public in 2019 by merging with a special purpose acquisition company (SPAC), is looking to sell $750 million in common stock in addition to $1.25 billion in Series A Mandatory Convertible preferred shares. Additionally, existing shareholders want to sell $250 million in stock through the offering. The offerings will take place concurrently.

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