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Why Is Guardforce AI (GFAI) Stock Down 32% Today?


  • Guardforce AI (GFAI) stock is falling on public offering news.
  • The company is selling 2,580,600 shares for $4.65 each.
  • GFAI stock closed out Wednesday at $7.30 per share.
GFAI Stock - Why Is Guardforce AI (GFAI) Stock Down 32% Today?

Source: metamorworks / Shutterstock.com

Guardforce AI (NASDAQ:GFAI) stock is falling on Thursday after the security solutions company announced details of a public offering.

The company is selling 2,580,600 shares of GFAI stock for a price of $4.65 per share. This has it expecting to raise $12 million from the offering. Additionally, underwriters of the offering can purchase another 387,090 of the stock within 45 days of the offering.

EF Hutton a division of Benchmark Investments, LLC is serving as the lead book-running manager for the GFAI stock offering. Alongside it is Spartan Capital Securities, LLC, which is acting as the co-manger for the public stock offering.

What a Public Offering Means for GFAI Stock

With Guardforce AI pricing and enacting this public offering, the company is increasing the total amount of outstanding shares available. That dilutes investors’ stake in the company, which helps explain today’s drop in GFAI stock.

To go along with that, public offerings often devalue a company’s shares. In this case, GFAI is selling its stock for $4.65 per share in the offering but it closed Wednesday at $7.30 per share. That’s another reason investors are reacting negatively to today’s public offering news.

GFAI stock is down 31.8% as of Thursday morning.

There’s even more stock market news traders will want to know about below!

We have all of the hottest stock market news traders will want to read up on for Thursday! A few examples include what has shares of Polar Power (NASDAQ:POLA), Himax Technologies (NASDAQ:HIMX), and Krispy Kreme (NASDAQ:DNUT) stock in the news today. You can get more info on these stocks at the following links!

More Thursday Stock Market News

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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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/why-is-guardforce-ai-gfai-stock-down-32-today/.

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