Know Labs (NYSEMKT:KNW) stock is falling on Wednesday as the company biosensor technologies company launches a public share offering.
This public offering has Know Labs selling 28 million shares of KNW stock at a price of 25 cents per share. This has it expecting to raise $7 million in gross proceeds from the stock offering. It will use these funds for “product development, clinical studies, general and administrative expenses, intellectual property and working capital.”
To go along with this, Know Labs includes a 30-day option allowing underwriters to acquire another 4.2 million shares at the offering price. The Benchmark Company, LLC and Boustead Securities, LLC are serving as joint book running managers of the KNW stock offering.
What This Means for KNW Stock
With this stock offering, Know Labs is increasing the total number of shares issued. Doing so dilutes the stakes of current shareholders in the company. This is likely part of the reason the company’s stock is down today.
In addition to that, the stock offering is priced below KNW’s closing price of 35 cents on Tuesday. It makes sense that the discount on KNW shares in the offering would weigh on the stock as a result.
KNW stock is down 37.4% as of Wednesday morning and is down 75.6% since the start of the year.
Investors seeking out even more of the most recent stock market stories will want to keep reading!
We’ve got all of the hottest stock market news that traders need to know about on Wednesday! That includes what has shares of Faraday Future (NASDAQ:FFIE) stock, Safe & Green Development (NASDAQ:SGDVV) stock and ShiftPixy (NASDAQ:PIXY) stock on the move today. 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.
