Picard Medical Stock Plunge
Picard Medical stock dropped approximately 65% in premarket trading on Friday, falling from its recent 52-week high of $13.36.
The crash erased months of upward price momentum, during which the stock traded 131.6% above its 50-day Simple Moving Average.
- The drop is attributed to a regulatory filing detailing a massive expansion of the company's equity plan.
- A Form 8-K filed on Oct. 14 detailed stockholder approval for amending the 2021 Equity Incentive Plan.
- The plan increased available shares to 18,000,000 and added warrants as a new award type, signaling substantial future dilution.
The expansion will devalue existing shareholder equity.
Author's summary: Picard Medical stock plunges 65% due to equity plan expansion.