Why Merus N.V. (MRUS) Crashed On Wednesday

We recently published a list of Investors Are Dumping These 10 Stocks. In this article, we are going to take a look at where Merus N.V. (NASDAQ:MRUS) stands against other worst-performing stocks on Wednesday.

Merus NV snapped a four-day winning streak on Wednesday, shedding 7.75 percent to end at $57.58 apiece as investors repositioned portfolios following the company’s announcement of a $300-million follow-on offering that could result in a potential dilution of their existing equity.

According to the company, it aims to sell 5.26 million common shares at a price of $57 apiece. It also granted its underwriters a 30-day option to purchase up to 789,473 common shares.

Why Merus N.V. (MRUS) Crashed On Wednesday

A scientist looking through a microscope conducting research in an immuno-oncology lab.

According to the company, it plans to use the proceeds to ramp up the clinical development of its product candidates, while the balance will be allocated for preclinical research and technology development, working capital, and general corporate purposes.

Merus N.V. (NASDAQ:MRUS) tapped Jefferies, BofA Securities, Leerink Partners, Guggenheim Securities, Truist Securities, and LifeSci Capital as its acting joint book-runners for the offering.

Meanwhile, Van Lanschot Kempen will act as lead manager for the offering.

Overall, MRUS ranks 3rd on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of MRUS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRUS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.