Guardforce AI (NASDAQ:GFAI) stock is taking a beating on Wednesday after the company revealed the details of a public share offering.
The public offering of GFAI stock has the company offering a total of 1,720,430 shares. These shares are priced at $4.65 each with the company expecting to raise $8 million from the public stock offering.
To go along with this, underwriters have a 45-day option to acquire another 258,064 shares of GFAI stock. EF Hutton is the lead book-running manager, and Spartan Capital Securities, LLC is the co-manager for the offering.
What the Offering Means for GFAI Stock
The offering from Guardforce AI means that it’s increasing the total number of outstanding shares of its stock. The offering also devalues the shares compared to their prior closing price of $11.69 each.
With that in mind, it’s no surprise that GFAI stock is falling today. Investors don’t often react well to public offerings for these two reasons. It also sometimes triggers heavy trading as shareholders sell their stakes in the company.
That’s not happening just yet as only about 832,000 shares of GFAI stock have changed hands as of this writing. For the record, the company’s daily average trading volume is closer to 2.5 million shares.
GFAI stock is down 60% as of Wednesday morning.
There’s even more stock market news traders will want to know about below!
We’ve got all of the biggest stock market stories worth reading about on Wednesday! A few examples include why shares of Akanda (NASDAQ:AKAN) and Aptorum (NASDAQ:APM) stock are up, as well as the biggest pre-market stock movers this morning. You can read all about these matters at the following links!
More Wednesday Stock Market News
- Why Is Akanda (AKAN) Stock Up 114% Today?
- Why Is Aptorum (APM) Stock Up 166% 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.
