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Small-Cap Snapshot: PG&E shares soar after struggling utility arranges $5.5B to finance bankruptcy

Last updated: 16:55 22 Jan 2019 GMT, First published: 16:37 22 Jan 2019 GMT

wild fires

Shares of The Pacific Gas and Electric Company (NYSE:PCG) surged Tuesday after the struggling Californian utility arranged $5.5 billion in financing to keep its operations afloat during its planned bankruptcy. JP Morgan Chase & Co, Bank of America Corp, Barclays PLC and Citigroup will provide debtor-in-possession financing to PG&E, which includes a $3.5 billion revolving credit facility, according to a regulatory filing with the US Securities and Exchange. The utility company is preparing to file for bankruptcy protection as it expects to face over $30 billion in liabilities related to California’s recent spate of wildfires which were potentially sparked by its power lines.

PG&E shares climbed 10.9% to $8.02.

Editas Medicine Inc (NASDAQ:EDIT) is having a tough morning, meanwhile, as investors are responding poorly to news that Katrine Bosley will step down as CEO of the genome editing company on March 1. The Cambridge, Massachusetts company’s board has tapped Cynthia Collins, a board member, as interim CEO. And a search process to find a permanent CEO has begun, with the firm hiring the executive search firm Heidrick & Struggles, to assist with the task.

Editas shed 22% to $20.50.

READ: IPO Roundup: New Fortress Energy, Pivotal Acquisition to tap capital markets despite US government shutdown

PetMed Express Inc (NASDAQ:PETS), the online US pet pharmacy, is also taking a hammering after missing Wall Street’s estimates for profit and revenue in its fiscal third quarter. The Delray Beach, Florida-based company posted net income of $0.38 per share on revenue of $60.1 million, which fell short of consensus estimates. Analysts had called for PetMed to report a profit of $0.48 per share on revenue of $64.28 million.

PetMed shares slipped 5.7% to $22.11.

CRISPR Therapeutics AG (NASDAQ:CRSP) joins the list of laggards too in the wake of published reports that Citigroup analyst Yigal Nochomovitz downgraded the biotech’s stock to Sell and tagged it with a $21 stock target. CRISPR is a gene-editing company focused on developing gene-based medicines for serious diseases.

CRISPR shares shed 12.4% to $32.52.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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