Leading aquaculture company AquaBounty’s (AQB) shares declined in price last Friday after the company announced discounted pricing for its secondary offering of shares. Furthermore, the stock has slumped over the past year and is now trading near its 52-week low. Also, considering the company’s negative cash flows, is the stock a buy on its recent dip? Read on.AquaBounty Technologies, Inc. (NASDAQ:AQB) in Maynard, Mass., is a leading aquaculture company that is focused on delivering game-changing solutions that solve global problems. Its primary product is AquAdvantage Salmon, a bioengineered Atlantic salmon for human consumption. The stock is currently trading well below its 50-day and 200-day moving averages, near its 52-week low of $2.32. The shares plunged last Friday after AQB revealed the pricing of a secondary stock offering.
AQB priced a public offering of 11,200,000 shares of common stock at $2.10 per share, representing an almost 33% discount to its $3.12 closing price on November 18, 2021. In addition, the issue’s underwriters have been granted a 30-day option to buy up to 1.6 million additional shares. It should be noted that AQB is not selling any shares and will not receive any proceeds from the shares offered by stockholders.
Nevertheless, the stock still looks overvalued at its current price. In terms of forward Price/Sales, AQB is currently trading at 117.79x, which is 1,527.4% higher than the 7.24x industry average.