Sorrento's Stock Plunges On Heavy Volume After Stock Offering Prices At Deep Discount

Shares of Sorrento Therapeutics Inc. plunged 36% toward a 4 1/2-year low in active morning trade Thursday, after the cancer treatment developer said its large public share offering priced at a deep discount. Volume spiked to 1.9 million shares in recent trade, already more than seven times the full-day average. Sorrento said its public offering of 23.6 million shares was priced at $2.00 a share, which was 32% below Wednesday's closing price of $2.95. The shares being sold, which are all coming directly from the company, in effect increases the shares outstanding by about 46%. The company said Chief Executive Henry Ji will be buying shares in the offering. The stock has now tumbled 62% year to date, while the S&P 500 has gained 4.8%.