Two weeks ago, Quantum Computing sold $500 million worth of stock.
Now, Quantum Computing wants to sell $750 million more.
Quantum Computing Inc. (NASDAQ: QUBT) stock is puzzling investors today.
Remember how, a couple of weeks ago, the quantum computing company announced it would sell 26.87 million shares and raise $500 million in new money? Well, it turns out Wall Street liked that idea so much that Quantum Computing was actually able to conduct a second share offering after the first one, and this second offering will raise $750 million.
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That sounds like good news, but this morning, Quantum Computing stock crashed 14% through 9:45 a.m. ET.
Why is that?
Image source: Getty Images.
Quantum Computing's second stock sale was "oversubscribed," meaning there were more investors wanting to buy Quantum Computing stock than there were Quantum Computing shares for sale, helping to drive the price higher.
In total, the company says it managed to unload 37.2 million new shares, and at an average sale price of $20.17 per share. That's a price 8% better than what it got for its stock offering two weeks ago. It is, however, a price significantly below where Quantum Computing closed out last week ($24.62), and the company's shareholders today seem upset that the company is selling out so cheaply.
Here's a second reason investors might (soon) get upset: No sooner had Quantum Computing sold 26.87 million shares of stock to investors, then these same investors turned around and filed to resell the stock for a profit last week.
Basically, they flipped the shares. They weren't really "investing" in Quantum Computing stock because they believe the company will succeed; they simply traded in the shares -- and then immediately backed out.
If that's what happens to this new batch of 37.2 million shares, too... look out below.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.