Molycorp to offer $200M of stock, shares -20%

|By:, SA News Editor

Molycorp (MCP) says it plans to offer up to $200M of its common stock, or up to $230M if the underwriters exercise their option to purchase additional shares - a major dilution for a company with a $1.3B market cap.

MCP said earlier this morning that it expects to generate a negative cash flow in its Q3 and its cash cushion has dwindled to insufficient levels.

Shares now -20% premarket.