Polar Power (NASDAQ:POLA) stock is taking a beating on Friday after the company priced a public offering of its shares.
The public offering reveals that the power generator company is selling 4 million shares of POLA stock at a price of 40 cents apiece. The offering also includes a 45-day option for underwriters to acquire another 600,000 shares at the offering price.
Polar Power is expecting to generate gross proceeds of $1.6 million from the public stock offering. It did not note what it plans to do with the funds from this offering. Investors will also note that ThinkEquity is acting as the sole underwriter for the offering.
What This Means for POLA Stock
A public offering of Polar Power stock increases the number of outstanding shares. Doing so also dilutes the investments of current shareholders in the company. That’s one reason POLA stock is down today.
The next negative for POLA shares today is the pricing of the stock in the offering. The 40 cents per share offering is a significant discount from its prior closing price of 82 cents per share. Given that information, it makes sense that investors would see the price of POLA stock fall on Thursday.
All of this news has POLA stock down 50.5% as of Friday morning. The stock was also down 35.9% year-to-date (YTD) when markets closed yesterday.
Investors who are looking for more of the most recent stock market stories are in luck!
We have all of the hottest stock market news that traders need to know about on Friday! A few examples include what has shares of NexImmune (NASDAQ:NEXI) and Green Giant (NASDAQ:GGE) stock up today, as well as the biggest pre-market stock movers this morning. All of that info is ready to go at the links below!
More Friday Stock Market News
- Why Is NexImmune (NEXI) Stock Up 353% Today?
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
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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.
