Ascent Solar Technologies (NASDAQ:ASTI) stock is falling on Thursday after the photovoltaic company launched a stock offering this morning.
The stock offering effect filing went out after markets closed on Wednesday. This has the company offering up to 4 million units, with each of these containing one share of ASTI stock and a warrant to acquire another share.
Ascent has priced these units at $6.23, which matches the closing price of its stock on Monday. The company notes that the warrants also have an exercise price of $6.23. They are exercisable immediately and expire in five years.
Ascent is expecting to raise gross proceeds of $12.5 million from this stock offering. The filing doesn’t say what the company intends to do with the money it will gain from this offering.
What This Means for ASTI Stock
A stock offering means that Ascent Solar Technologies is increasing the total number of shares available. With that, the stakes of current investors in the company are diluted. That’s likely one of the reasons shares of ASTI stock are down today, as investors are reacting negatively to the offering news.
ASTI stock is experiencing heavy trading today alongside the stock offering news. That has more than 222,000 shares of the company’s stock changing hands as of this writing. For the record, that’s already nearly double its daily average trading volume of 138,000 shares.
ASTI stock is down 58.4% as of Thursday morning.
Investors keeping up with all of the latest stock market news today will want to stick around!
We’re offering up all of the hottest stock market news that traders need to know about on Thursday! That includes what has shares of Inpixon (NASDAQ:INPX) and Bionomics (NASDAQ:BNOX) stock up, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links 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.