Why Bubs, Carbon Revolution, Paradigm, & Tyro shares are sinking

Bubs Australia Ltd (ASX:BUB) and Paradigm Biopharmaceuticals Ltd (ASX:PAR) are two of four ASX shares sinking on Monday…

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In afternoon trade on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. At the time of writing, the benchmark index is down slightly to 7,057.7 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:

finger selecting sad face from choice of happy, sad and neutral faces on screen, indicating a falling share price

Image source: Getty Images

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down almost 2.5% to a two-year low of 43 cents. This is despite there being no news out of the infant formula company today. However, with its third quarter update due this week and analysts warning that trading conditions are very tough, investors may be jumping ship in anticipation of a very poor update.

Carbon Revolution Ltd (ASX: CBR)

The Carbon Revolution share price has crashed 22% to $1.83. Investors have been selling the carbon fibre wheels manufacturer's shares following the completion of the institutional component of its underwritten entitlement offer and placement. According to the release, the company has raised $73.5 million at a discount of $1.60 per new share. It will now seek to raise a further $21.5 million from retail investors. These funds will be used to execute its mega-line strategy.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

The Paradigm share price is down almost 7% to $2.38. The biopharmaceutical company's shares have come under pressure today after an update on its dealings with the US FDA. According to the release, on Friday Paradigm received a verbal indication from the FDA that the regulator would be putting further questions to Paradigm outside the 30-day investigational new drug (IND) application review period. This has the potential to delay proceedings and adds an element of uncertainty.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 3% to $3.81 following the release of a trading update. Investors have been selling the payments company's shares despite it reporting transaction value of $1.741 billion month-to-date in April. This is up 155% on the prior corresponding period. Though, it is worth noting that this time last year the pandemic was hitting the economy hard.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Carbon Revolution Limited and Tyro Payments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia has recommended BUBS AUST FPO and Carbon Revolution Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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