Draganfly (NASDAQ:DPRO) stock is falling on Wednesday after the drone company announced plans for a proposed public stock offering.
According to a press release, the company is seeking to raise money from a firm commitment underwritten public offering. Draganfly doesn’t say how many shares it will offer or what it will price them at.
What we do know is the company’s plans for the money raised by the offering. Draganfly says it will use the money from the offering for business operations, as well as increase the growth of its products to meet demand. It may also use the money for acquisitions and research and development.
Investors aren’t excited about the news, which makes sense. A stock offering would dilute their current investments in the company. It could also devalue the stock depending on the offering price.
DPRO Stock Falls For Two Days
Investors will note that this is the second day in a row the company’s stock has seen a major dip. That first one was caused by the company’s earnings report for the first quarter of 2022. It failed to meet Wall Street’s estimates for the quarter, which caused DPRO stock to drop on Tuesday.
DPRO stock is down 16.9% during pre-market trading on Wednesday but is still up 76.5% since the start of the year.
Investors looking for more of the latest stock market news are in luck!
We’ve got all of the hottest stock market news traders need to know about on Wednesday! A few examples include why shares of BiomX (NYSEMKT:PHGE) and LogicMark (NASDAQ:LGMK) stock are rising, as well as the biggest pre-market stock movers from this morning. You can find out more on these matters at the links below!
More Wednesday Stock Market News
- Why Is LogicMark (LGMK) Stock Up 31% Today?
- Why Is BiomX (PHGE) Stock Up 8% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
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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.