Top Decliners Include A Biopharmaceutical Company And An Online Gaming Operator
Even though all three major U.S. equity indices ended the day well in positive territory, several stocks ended the day notably in the red. Here is a look at two companies that disappointed investors on Tuesday and what happened.
Nektar Therapeutics Plunges On Capital Raise
Shares of Nektar Therapeutics (NASDAQ: NKTR) fell more than 10 percent on Tuesday after the company said that it has commenced a public offering of $175 million worth of its stock.
Nektar is a bio-pharmaceutical company that is developing a pipeline of drug candidates for therapeutic areas, including oncology, pain, anti-infectives and immunology. The company’s objectives is to apply its advanced polymer conjugate technology platform and create new drug candidates that address large potential markets.
As of the end of September, the company held cash and cash equivalents of $253.5 million. However, the company said it plans on raising $175 million to finance ongoing research and development funding and working capital.
Amaya Isn’t For Sale
Amaya (NASDAQ: AYA) is a Canada-based gaming operator that controls well known online poker gambling sites such as PokerStars and Full Tilt, announced on Tuesday that an ongoing alternative strategic review has ended.
The company previously announced that it is exploring strategic alternatives, including a sale of itself. However, a special committee concluded that at this point in time Amaya is better suited to remain an independent publicly-traded company.
William Hill, a bookmaker based in the UK that is listed on the London Stock Exchange, was said to be interested in acquiring the company and Amaya confirmed talks occurred regarding a merger of equals but was called off after the companies mutually agreed not to pursue a merger.
Moreover, Amaya confirmed that its former CEO, David Baazov, is interested in acquiring the company and take it private with him at the realm again. The special committee confirmed it has never received an offer from Baazov or its advisors.
As such, while the company’s Board of Directors will continue fulfilling its fiduciary duty of considering any offer that Baazov or any other party makes in the future, it now considers the review of its strategic alternatives to be over.
Shares of Amaya lost more than eight percent on Tuesday and closed the day at $14.24.