Guess which ASX All Ords share is crashing 34% to a 52-week low

This biopharmaceutical company's shares are being hammered on Wednesday. But why?

| More on:
A young woman with long brown hair opens her green eyes widely expressing surprise.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has returned from its trading halt and crashed deep into the red.

In morning trade, the ASX All Ords share is down 34% to a 52-week low of 40.5 cents.

Why is this ASX All Ords share crashing?

Investors have been hitting the sell button today after the biopharmaceutical company announced the completion of the institutional component of a $30 million capital raising.

According to the release, the placement and institutional offer raised a total of $21.1 million and received strong support from new and existing institutional and sophisticated investors in Australia and internationally.

These funds were raised at 43 cents per new share, which represents a 30% discount to where the ASX All Ords share was trading prior to its halt.

The company will now push ahead with its 1 for 10 retail entitlement offer to raise the balance.

Why is Paradigm raising funds?

The funds raised will be used to support Paradigm through to mid-2025, which includes the expected top-line readout from the Phase 3 osteoarthritis (OA) clinical trial.

Paradigm's managing director, Paul Rennie, commented:

I would like to thank all the existing shareholders for their continued support of Paradigm and would like to welcome the new institutional investors as we continue to progress iPPS as a potential blockbuster therapy for osteoarthritis. To receive such strong support is a great endorsement of the ongoing strength of our clinical assets and focusses the Company on progressing our phase 3 OA clinical program and commercial licensing discussions to achieve value for all Paradigm shareholders.

This ASX All Ords share is now down approximately 70% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Lows

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Core Lithium share price hits a multi-year low: Will the tide change soon?

Are analysts now seeing value emerge from the lithium miner's shares?

Read more »

Red arrow going down on a stock market table which symbolises a falling share price.
52-Week Lows

2 ASX shares to buy that are at 52-week lows

Goldman Sachs thinks these beaten down shares are buys.

Read more »

A group of six young people doing the limbo on a beach, indicating oversold shares that can not go any lower.
52-Week Lows

Core Lithium share price dives another 12%. How low can it go?

Core Lithium has been playing a game of limbo with investors in 2024...

Read more »

Man on a laptop thinking.
52-Week Lows

2 ASX shares to buy that are near 52-week lows

Analysts think these beaten-down shares could be top buys.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
52-Week Lows

3 ASX 300 shares hitting new 52-week lows: Are they cheap buys?

What's sending these shares down to new lows today?

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why did this ASX All Ords stock just crash 24%?

What is weighing down this lithium stock today? Let's find out.

Read more »

A businesswoman gets angry, shaking her fist at her computer.
52-Week Lows

3 ASX shares at 52-week lows or worse

Times have been hard for owners of these shares.

Read more »

Blue chips with stock written on them.
52-Week Lows

These 3 ASX blue-chip shares just hit multi-year lows. Am I buying?

Here's what I'd do with these battered blue-chip shares...

Read more »