What must be the strangest stock offering in my trading career, Protalex Biotherapeutics (NYSEMKT:PLX) sold 10 million additional shares on the market Thursday at $5 per share. Why strange? Because the stock closed at $36 a share on Wednesday! The stock's wild trading session Thursday ended at a price of $6.31.
Why would the company sell their stock at a price so much lower than market valuation? Even more strange: Phillip Frost, the founder of IVAX and the main player behind recent successful stocks such as Ladenburg Thalmann Financial Services (NYSEMKT:LTS) and Opko (NYSEMKT:OPK), held around 11% of Protalex stock. That means Dr.Frost lost more than $200 million after the stock offering. This is not indicative of his investment track record - not even close.
There has been no word from anyone related to the company, nor Dr.Frost. It is in the company's best interest to release some kind of statement for investors, as I am sure many will not be sleeping well tonight.