$EDSA caught late buyers off guard with a -15.8% slide following an evening public offering filing.
When a biotech prints a secondary offering after the bell, retail often scrambles to 'buy the discount.' Across 3,606 historical catalyst-driven gap-downs of 15% or more, the base rate shows the stock closes deeper in the red 55% of the time, with a negative average continuation.
Dilution is not an oversold bounce setup; it is permanent structural supply.