Second Sight’s Stock Plunges After Announcement

Shares in Second Sight Medical Products Inc. dropped by more than 25 percent on Wednesday before slightly recovering by the close of trading after the company announced a private placement of its stock.The Sylmar visual prosthetics developer expects to raise about $28 million before deducting standard expenses for the sale of 4.7 million shares at $6 each. “This private placement is expected to close on March 26, 2021, subject to customary closing conditions. The net proceeds from the private placement are expected to provide working capital for the company,” Second Sight said in a news release. Reaction to the falling share price was mixed among investors who commented at the Yahoo Finance message board. Some said the stock drop was due to dilution caused by the increased number of shares while others believed the share price will increase and those with the stock should hold on to it.  “I have truly gone through the whole range of emotions this morning,” wrote one investor named Harry. “From convinced I’d be selling, to considering selling half, to holding, and now to deciding that I'm doubling down at market open. I suddenly remembered why I got into this stock – to make money, not to lose it!”Shares in Second Sight (EYES) closed down $2.19, or nearly 20 percent, to $8.82 on the Nasdaq on Wednesday, a day when that market closed down 2 percent.