Why BioHaven Stock Is Soaring Today
Shares of Biohaven (NYSE: BHVN) are surging on Monday. The company's stock was up about 8% as of midday trading and had climbed as much as 10% earlier in the day. The move comes as the S 500 traded mixed and the Nasdaq Composite drifted slightly higher.
Shares of the clinical-stage biopharmaceutical company were rising after Biohaven announced a $600 million non-dilutive financing deal with Oberland Capital.
Biohaven revealed it has secured up to $600 million from the investment firm Oberland Capital Management. The deal includes an immediate $250 million with the remainder tied to regulatory milestones and strategic acquisitions. Critically, the deal is non-dilutive, meaning that Oberland doesn't get new shares -- a move that would reduce the value of existing shareholders' portfolios. Announced via press release, the deal provides "significant financial resources" to advance clinical trials and prepare for a potential FDA approval of troriluzole for spinocerebellar ataxia (SCA).
Source Fool.com
