Nxu (NASDAQ:NXU) stock is taking a beating on Wednesday after the power storage company announced a public share offering.
That public stock offering has Nxu selling 16,666,667 units at a price of 30 cents each. These units each contain one share of NXU stock as well as a warrant to purchase another share. The warrants also have an exercise price of 30 cents and expire three years after being issued. They are immediately exercisable.
Nxu notes that this stock offering is expected to close on Friday. The company is also looking for gross proceeds of $5 million from the stock sale. It will use this money as working capital and funding for general corporate purposes.
To go along with this offering, Nxu is updating its Series B warrants for 1,905,750 shares of its stock issued on Feb. 21, 2023. This allows them to be exercised at no cost in exchange for NXU stock worth the value of cash the warrants were previously exercisable for.
What Does This Means for NXU Stock?
An increase in the total number of outstanding shares dilutes current shareholders’ stakes in the company. With that in mind, it makes sense that today’s stock offering would result in NXU stock losing value, as this demoralizes investors.
In addition to that, the stock offering price of 30 cents is also weighing on NXU shares. That’s below its prior closing price, and further devalues the company’s stock. All of this news has shares of NXU falling 32.2% as of Wednesday morning.
Investors can find even more of the most recent stock market news ready to go below!
We’ve got all of the latest stock market coverage worth reading about on Wednesday! That includes what has shares of Doximity (NYSE:DOCS) stock, 180 Life Sciences (NASDAQ:ATNF) stock, and Ebet (NASDAQ:EBET) stock on the move today. All of that news is available at the following links!
More Wednesday Stock Market News
- Why Is Doximity (DOCS) Stock Down 23% Today?
- Why Is 180 Life Sciences (ATNF) Stock Up 38% Today?
- Why Is Ebet (EBET) Stock Up 45% Today?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
