Netcapital (NASDAQ:NCPL) stock is dropping on Thursday after the fintech company announced the pricing of a public share offering.
This has Netcapital offering up 1,725,000 shares of NCPL stock at a price of 70 cents per share. That has the company expecting gross proceeds of $1,207,500 from the public stock offering. Also, ThinkEquity is the sole book-running manager for the offering, which closes on July 24.
Netcapital also already has plans for the money that it plans to raise from this stock offering. According to a press release, these funds will be used for general corporate purposes, capital expenditures, working capital, as well as general and administrative expenses.
How This Affects NCPL Stock
With this stock offering, Netcapital is increasing the total number of outstanding shares available. Doing so dilutes current shareholders’ stakes in the company. That may help explain why the stock is falling today.
Also not helping matters is the offering price of 70 cents per share. That devalues the stock compared to its prior closing price of $1.17 per share. It’s likely that the lower offering price is hurting investor morale this morning.
With all of this comes decent trading of NCPL stock on Thursday morning. As of this writing, more than 200,000 shares of the stock have changed hands. That’s closing in on its daily average trading volume of about 443,000 shares.
NCPL stock is down 41.9% as of Thursday morning.
Investors looking for even more of the most recent stock market news will want to stick around!
We’ve got all of the latest stock market coverage that traders need to know about on Thursday! A few examples include why shares of Eliem Therapeutics (NASDAQ:ELYM) and PainReform (NASDAQ:PRFX) are up today, as well as the biggest pre-market stock movers this morning. You can read up on all of that news at the following links!
More Thursday Stock Market News
- Why Is Eliem Therapeutics (ELYM) Stock Up 6% Today?
- Why Is PainReform (PRFX) Stock Up 38% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
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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.
