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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is heading lower. At the time of writing the benchmark index is down 0.1% to 6,006.1 points.
Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:
The Cann Group Ltd (ASX: CAN) share price has crashed 16% lower to 69 cents. This morning the cannabis company announced a heavily discounted $24.3 million capital raising. These funds were raised at $0.40 per new share, which represents a 51.2% discount to its last closing price. Cann advised that the proceeds from capital raising will be used to fund its business while it pursues near-term growth opportunities It also revealed that it is gaining strong commercial momentum and is forecasting FY 2021 revenues of $15 million.
The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 4.5% to $10.27. The domestic travel market was dealt a blow this morning when the New South Wales government announced that COVID-19 restrictions will be extended to restaurants, bars, cafes, and clubs. A number of other notable travel and tourism companies have dropped lower with Flight Centre today.
The Helloworld Travel Ltd (ASX: HLO) share price has fallen 7.5% to $1.82. This follows the completion of its institutional placement and entitlement offer this morning. Helloworld raised gross proceeds of approximately $41.6 million at an offer price of $1.65 per new share. This represents a discount of 16% to its last close price. The proceeds of the equity raising will provide it with balance sheet liquidity through to 2022.
The Zip Co Ltd (ASX: Z1P) share price is down a further 6% to $5.58. Investors have been selling the payments company's shares this week after they were downgraded by a leading broker. UBS downgraded Zip to a sell rating with a $5.70 price target. As the Zip share price has now fallen below this target price, I suspect it might start to find support from buyers.
