Drug-discovery venture Carna Biosciences announced the previous day that it would raise approximately ¥1.4 billion through a new share issue and CBs. The shares fell throughout the session in response, closing at ¥433.
Carna Biosciences fell for the second consecutive session on the Tokyo Stock Exchange on 29 September. The decline followed the company's announcement the previous day that it would raise funds through a new share issue and convertible bonds with stock acquisition rights (CBs).
The total proceeds from the new share issue and CBs will be ¥1.411 billion, comprising ¥850 million from the new share issue and ¥561 million from the CBs. Selling driven by concerns about worsening supply and demand came first, while the CB issuance period and terms are as described below.
The CBs will be issued in three tranches on 14 October, 4 November and 25 November. The conversion price will generally not be revised from ¥409.50. The number of shares outstanding could increase by up to 17.43%.
The specific increase in the number of shares to be issued remains unclear at this stage, and there was also speculation that selling for short-term trading gains continued.