Toughbuilt Industries (NASDAQ:TBLT) stock is falling hard on Wednesday after the construction equipment company announced a public offering.
Toughbuilt Industries has priced shares in this offering at 41 cents each. The offering includes a total of 10.97 million shares, each of which comes paired with a warrant to acquire another share of TBLT stock. The warrants have an even lower exercise price of 29 cents per share.
To understand why this is hammering TBLT stock today, traders will note that the stock closed on Tuesday at 56 cents per share. That has the price of the shares in the public offering devaluing the stock. Even worse is the lower exercise price for the warrants.
Toughbuilt Industries notes that it expects to raise gross proceeds of $4.5 million from this offering. The company intends to use the funds gained from this stock offering for general corporate purposes, which includes working capital.
How This Affects TBLT Stock Today
Investors in TBLT stock, which is sometimes listed among meme stocks, aren’t celebrating today’s news. With the falling of the stock comes heavy trading of the shares today. As of this writing, more than 6 million shares have been traded. To put that in perspective, the company’s daily average trading volume is closer to about 281,000 shares.
TBLT stock is down 45.1% as of Wednesday morning and down 85.7% since the start of the year.
Investors seeking out even more of the most recent stock market news today will want to keep reading!
We have all of the latest stock market coverage that traders need to know about on Wednesday! A few examples include what’s moving shares of Ocean Biomedical (NASDAQ:OCEA), Virgin Galactic (NYSE:SPCE) and Eightco Holdings (NASDAQ:OCTO) stock today. You can catch up on all of this news at the following links!
More Stock Market News For Wednesday
- Why Is Ocean Biomedical (OCEA) Stock Up 26% Today?
- The Cost to Borrow Virgin Galactic (SPCE) Stock Just Doubled
- OCTO Stock Alert: Eightco Holdings Hikes 2023 Revenue Guidance
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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.
