Fans of Eargo (NASDAQ:EAR) stock will want to keep an eye on the company when Oct. 20 rolls around. Eargo is preparing for a rights offering.
Next Thursday, Oct. 20, is the last day shareholders can be on record for the upcoming rights offering. That offering is set to take place just a few days later on Oct. 24. Investors need to be on record to take part in the offering.
This offering will see Eargo offer up rights to purchase as much as 375 million shares at a subscription price of 50 cents per share. The company intends to generate $187.5 million in “aggregate gross proceeds” from this offering.
EAR Stock: What Will Happen to the Funds?
Eargo has already laid out its full plans for the money that it makes from the offering. The most important use will be the repayment of outstanding notes issued to Patient Square Capital. It intends to use a substantial amount of the money for this purpose.
For some background, Eargo entered into an agreement to issue those senior notes on June 28, 2022. This saw $100 million worth of notes issued to an affiliate of Patient Square. The agreement included approval from shareholders for the rights offering.
EAR stock is down 4.4% as of Friday afternoon.
Investors looking for more of the hottest stock market news will want to keep reading!
InvestorPlace has all of the latest stock market news traders need to know about for Friday! Among that is why shares of Castellum (NYSEMKT:CTM), Revlon (NYSE:REV) and UnitedHealth (NYSE:UNH) are in the news today. You can read up on all of that at the following links!
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On the date of publication, William White did not hold (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.
