According to a press release from Volcon, the company is offering up 1.4 million shares of VLCN stock at a price of 50 cents apiece. This has the company expecting to raise $700,000 in gross proceeds from the stock offering.
To go along with this, the offering includes a 45-day option for underwriters to acquire an additional 15% of the shares sold. That means Aegis Capital, the sole book-running manager for the offering, can acquire more VLCN stock at the 50 cents per share price.
Volcon also mentioned what it intends to do with the money raised from this stock offering. The company intends to use these funds for “general corporate purposes, including working capital, investor relations activities, operating expenses and capital expenditures.”
What This Means for Investors of VLCN Stock
With this offering, Volcon is increasing the total number of shares available. Doing this dilutes the current stakes of investors, which explains why the stock is falling this morning. Also not helping matters is the 50 cent per share price, which is below yesterday’s close price of 64 cents per share.
VLCN stock is down 31.8% as of Friday morning.
There’s even more stock market news that traders are going to want to read about below!
We’ve got all of the biggest stock market stories worth knowing about on Friday! That includes why shares of Axcella Health (NASDAQ:AXLA) stock, Moleculin Biotech (NASDAQ:MBRX) stock and AgriFORCE Growing Systems (NASDAQ:AGRI) stock are on the move today. All of that news is ready to go at the links below!
More Stock Market News for Friday
- Why Is Axcella Health (AXLA) Stock Down 24% Today?
- Why Is Moleculin Biotech (MBRX) Stock Is Moving Today?
- Why Is AgriFORCE Growing Systems (AGRI) Stock Up 74% Today?
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On the date of publication, William White did not hold (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.