Silicon Valley Bank (SVB) had a plan to shore up its balance sheet. Clearly, the plan didn't work.
involved issuing two different classes of stock, with pricing meant to take place after the close of trading on Thursday.
The lower the share price, the greater the dilution. So when the stock started falling, the deal looked increasingly bad for SVB, putting extra pressure on the stock. Because SVB was now in the middle of a securities offering, it considered itself to be in a "quiet period" where it couldn't communicate anything substantive to depositors, investors, or the press beyond what was in its SEC filings.
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