Chicken Soup for the Soul (NASDAQ:CSSE) stock is falling hard on Friday after the company revealed plans for a public stock offering.
According to a press release from the company, it will sell 4,688,015 shares of CSSE stock for $2.30 per share. This has it expecting to raise $10.8 million from the offering. There’s also an option for underwriters to acquire an additional 1,643,015 shares.
Chicken Soup for the Soul notes that the offering is restricted to certain investors. That includes new and existing institutional investors, as well as certain members of its leadership team, such as its CEO.
Q4 Earnings Drag CSSE Stock Lower
Results from the fourth quarter of 2022 also aren’t helping CSSE stock on Friday. The company reported earnings per share of -$2.70, which is well below Wall Street’s estimate of -$1.17 per share. It’s also much wider than the -$1.13 per share reported during the same time last year.
The company’s revenue for the period came in at $113.6 million. That’s just barely above the $112.34 million that analysts were expecting. It’s also an improvement over the $36 million reported in Q4 2021.
With today’s news comes heavy trading of CSSE stock. This has some 279,000 shares on the move as of this writing. For the record, the company’s daily average trading volume is about 442,000 shares.
Shares of CSSE stock are down 30.3% in pre-market trading on Friday.
Investors looking for more of the latest stock market news will want to keep reading!
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On the date of publication, William White 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.
