Daxor stock tumbles 19% premarket after announcing plans to issue $4 million of stock

Daxor Corp.’s stock
DXR,
-22.22%
tumbled 22% premarket Monday, after the company announced plans to issue stock. The company, which is registered as a closed-end investment company to raise the funds for its medical device and biotech operations, announced the plan in a filing with the Securities and Exchange Commission on Friday. On Monday, it said the offering would comprise 410,260 shares priced at $9.75 to raise $4 million. The stock closed Friday at $12.24. The company engaged Maxim Group as sole underwriter on the deal. Proceeds will be used for working capital and other general corporate purposes, which may include product development, funding capex, making acquisitions, investing in technology or repaying debt. The stock has gained 33.6% in the year through Friday’s close, while the S&P 500
SPX,
+0.15%
has gained 9%.