Arqit Quantum (NASDAQ:ARQQ) stock is taking a beating on Friday after the company announced a direct offering for shares.
The direct offering will have the company selling units to several institutional investors. That includes 10 million shares of ARQQ stock, which also come with warrants to purchase another 7.5 million shares.
The purchase price for these units is $2 apiece and the warrants are exercisable for the same price. For the record, ARQQ stock was trading at $2.53 per share when markets closed on Thursday.
Arqit Quantum expects to raise $20 million from this offering. The company will use the net proceeds from the direct offering to “enhance international customer service capabilities in support of the growth of its recently announced channel partnerships.” The money will also be used for general corporate purposes.
What This Means for ARQQ Stock
A direct offering increases the number of outstanding shares while allowing Arqit Quantum to be selective about which investors’ stakes increase. That may not go over well with normal traders as they see their stakes in the company diluted.
With today’s news comes heavy trading of ARQQ stock. That has some 11 million shares on the move as of this writing. For comparison, the company’s daily average trading volume is about 1.4 million shares.
ARQQ stock is down 43.8% as of Friday morning.
There’s even more stock market news traders need to know about on Friday!
Luckily, we’ve got all that news ready to go for investors! Among that is what’s going on with shares of ShiftPixy (NASDAQ:PIXY), Roku (NASDAQ:ROKU) and Esports Entertainment (NASDAQ:GMBL) stock. You can find out more on these matters at the following links!
More Friday Stock Market News
- ShiftPixy (PIXY) Stock Moves on Mobile Ordering App Announcement
- ROKU Stock Scores Rare Double Upgrade From Bank of America
- What Is Happening With Esports Entertainment (GMBL) Stock Today?
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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.