Tivic Health Systems (NASDAQ:TIVC) stock is falling hard on Monday after the health technology company priced a public share offering.
According to a press release, the company is offering up 33,173,000 shares of TIVC stock for a price of $0.041 per share. Maxim Group LLC is the sole placement agent for the offering, which is expected to close on Wednesday.
Tivic Health Systems is expecting gross proceeds from the stock offering to be $1.4 million. The company says that it intends to use this money for working capital and general corporate purposes.
What This Means for TIVC Stock
A stock offering from Tivic Health Systems increases the total number of shares issued by the company. Doing this dilutes the current stakes of investors in the company. That is likely part of the reason behind TIVC stock falling today.
In addition to that, the $0.041 offering price is below the stock’s prior closing price of $0.0717 per share. That devalues the company’s stock and is also another likely culprit behind the stock falling today.
Investors will also keep in mind that TIVC is a penny stock with a low trading price and market capitalization of $8.133 million. That means it’s easier for the stock to experience volatility alongside news, like what was announced this morning.
TIVC stock is down 43.8% as of Monday morning and is down 89% year-to-date as of Friday’s close.
Investors seeking out even more of the most recent stock market news today are in luck!
We have all of the latest stock market stories that traders need to know about on Monday! A few examples include why shares of AgriFORCE Growing Systems (NASDAQ:AGRI) and Save Foods (NASDAQ:SVFD) stock are up, as well as the biggest pre-market stock movers this morning. You can learn all about these matters at the links below!
More Monday Stock Market News
- Why Is AgriFORCE Growing Systems (AGRI) Stock Up 67% Today?
- Why Is Save Foods (SVFD) Stock Up 128% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
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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.
