Shares of Know Labs (NYSE:KNW) are trading messily on Friday. The stock is down about 18% so far on the day, as investors size up the current environment. Unfortunately, it’s a “risk-off” type of day and that’s not boding well for KNW stock.
As it pertains to the broader market, today is a triple-witching (or if you prefer, quadruple-witching) expiration day. It only happens four times a year and tends to lead to choppy price action for the day. That’s as funds and investors rebalance their positions and unwind derivative trades.
While that may not directly impact KNW stock, the impact it’s having on the market is not positive and therefore, not lending a helping hand to Know Labs.
That aside, the company has gone public by offering 3.6 million shares at $2 apiece. That was upsized from an original 3 million share offer at $2 apiece. There’s a 45-day option to purchase up to 540,000 additional shares at the same price. That could turn out to be quite the opportunity if the stock can find some upside momentum.
What Is KNW Stock and Is It a Buy?
The situation with KNW stock is not exactly black and white. The stock is actually up about 7% from the initial public offering (IPO) price. However, it’s down about 15% from where it closed last night. Previously, Know Labs was traded over the counter (or OTC) and closed at $2.53 on Thursday. For investors that are out of the loop, that’s likely to cause some confusion today.
As for what it does, the company developed a way to monitor glucose levels in a non-invasive way by using radio waves through the skin using what Know Labs calls Bio-RFID technology.
The 15-person company is looking at the capital raise as a way to infuse some capital into its business. Founder and chairman Ron Erickson said that a “cash infusion will help the company boost its overall profile while getting exposure to additional funding and institutional investors.”
Prior to the recent listing, Know Labs said it had enough funding to last through next June. The hope is that the upsized listing will be more than enough to carry the company until its business can fully support its operation.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
