The public stock offering has Sidus Space offering up 30.30 million shares of SIDU stock. There’s also an equal amount of warrants bundled together with those shares. These warrants can be used to purchase additional shares of SIDU stock.
The units offered in this public stock offering are priced at 33 cents each. This has the company expecting to raise $10 million from the offering. The company will use these funds for “sales and marketing, operational costs, product development, manufacturing expansion” and other purposes.
Sidus Space notes that there’s also an option for underwriters to acquire another 4.54 million shares, pre-funded shares or warrants. Underwriters Boustead Securities, LLC and EF Hutton have 45 days to exercise this option.
How This Affects SIDU Stock
It’s unsurprising that shares of SIDU stock would lose value alongside a public offering. These types of offerings are unpopular with investors for a couple of reasons. That includes diluting current stakes, as well as devaluing the stock.
Following the public offering news, some 1.5 million shares of SIDU stock have changed hands. For comparison, the company’s daily average trading volume is about 5.5 million shares. Also, SIDU stock is down 29.4% during pre-market trading 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.