1847 (NYSEMKT:EFSH) stock is dropping on Thursday after the small business acquisitions and management company revealed plans for a public offering of its shares.
A filing with the Securities and Exchange Commission (SEC) details the company’s intentions with the offering. That includes a proposed price of $1.87 per share, with 2,673,797 shares of EFSH stock being offered.
1847 notes that the public offering will generate gross proceeds of $5 million and net proceeds of $4.3 million. The company says it will use these funds to repay certain debts, for working capital and general corporate purposes.
How This Affects EFSH Stock Today
News of the public offering is dragging down EFSH stock this morning, and that makes sense. The offering will increase the total number of outstanding shares on the market. Doing so dilutes the investments of current stockholders in the company.
To go along with that, the offering price of $1.87 per share is a discount over its closing price of $1.99 per share on Wednesday. It makes sense that this lower offering price would pull down the value of shares already on the market.
EFSH stock is down 17.1% as of Thursday morning, with only about 9,000 units moving. The company’s daily average trading volume is about 147,000 shares.
Investors who want more of the top stock market stories today are in luck!
We’re offering all of the biggest stock market news that traders need to know about on Thursday! That includes everything happening with shares of Akoustis Technologies (NASDAQ:AKTS) stock, Charge Enterprises (NASDAQ:CRGE) stock and C3is (NASDAQ:CISS) stock today. You can find more on these matters at the links below!
More Stock Market News for Thursday
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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.
