LQR House (NASDAQ:LQR) stock is diving on Monday after the company revealed details about a public offering prospectus.
According to a filing with the Securities and Exchange Commission (SEC), LQR House is planning to offer 26,315,789 shares of its stock. The company is expecting the shares to be priced at 38 cents each, which matches its prior closing price.
To go along with this offering, LQR House also mentions an offering by certain stockholders. That will see them offer 2,550,622 shares of LRQ stock. These will likely be offered for the same price as the shares being sold by LQR House.
What This Means for LQR Stock Investors
A stock offering means that LQR House is increasing the total number of shares on the public market. Doing so dilutes the stakes of current investors in the company. That’s likely one of the reasons the stock is sliding lower this morning.
To go along with that, the potential for the stock in the offering to be discounted isn’t sitting well with investors. That would devalue shares already on the market, which isn’t what shareholders want to see.
LQR stock is down 29.9% as of Monday morning, with some 587,000 shares on the move. That’s still below its daily average trading volume of about 3.8 million shares.
There’s even more stock market news that traders will want to read about down below!
We’ve got all of the hottest stock market coverage investors need to know about on Monday! That includes everything happening with shares of Shift Technologies (NASDAQ:SFT) stock, Maris Tech (NASDAQ:MTEK) stock and ParaZero Technologies (NASDAQ:PRZO) stock. All of that news is ready to go at the links below!
More Stock Market News for Monday
- Why Is Shift Technologies (SFT) Stock Down 86% Today?
- Why Is Maris Tech (MTEK) Stock Up 27% Today?
- Why Is ParaZero Technologies (PRZO) Stock Up 62% Today?
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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.
