Super League Gaming (NASDAQ:SLGG) stock is falling on Monday after the esports entertainment company announced a proposed share offering.
According to a press release from Super League Gaming, the company is offering up shares of SLGG stock in the offering. That offering will also see it offer an additional 15% of shares to underwriters for the same price.
Super League Gaming doesn’t have the exact details of the stock offering pinned down just yet. That means we still don’t know how many shares will be included in the offering. Likewise, the price of shares in the offering is still unknown.
What we do know is what the company intends to do with the money it would raise from this stock offering. Super League Gaming says that it will spend these funds on working capital and general corporate purposes.
How This Affects SLGG Stock
A stock offering means that Super League Gaming is increasing its total number of shares. Doing so dilutes the current stakes of investors. That helps explain why its shares are seeing negative movement today.
In addition to that, the company’s trading volume this morning comes in at 663,000 shares. To put that in perspective, its daily average trading volume is closer to 562,000 shares.
SLGG stock is down 32.6% as of Monday morning and is down 37.2% year-to-date as of Friday’s close.
Investors can check out more of the most recent stock market news below!
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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.
