Microbot Medical's Stock Plunges After Stake Sold At Deep Discount

Shares of Microbot Medical Inc. plunged 23% in premarket trade Monday, after the micro-robotic medical technologies company announced the sale of shares at a deep discount to the latest closing price. The company said it entered into an agreement with three institutional investors for the sale of 3.75 million shares for $10.125 million. That implies a price of $2.70 a share, which is 41% below Friday's closing price of $3.81. The number of shares sold represents about 13% of the shares outstanding, according to FactSet. Microbot said it to expects to use the proceeds from the share sale to expand its current technology platforms, for potential strategic partnerships and the potential acquisition of assets. The stock had run up 41% over the past three sessions after closing at a record low of $2.69 on May 30. It has plummeted 38% year to date through Friday, while the S&P 500 has gained 8.9%.