Genius (NYSEMKT:GNS) stock is falling on Friday after the education services company announced a public offering for its shares.
Genius launched a public offering for 23,571,429 shares of GNS stock priced at 35 cents each. Every share in this offering also includes a Series 2024-A warrant, and Series 2024-C warrants each for another 23,571,429 shares of GNS stock.
Genius is expecting gross proceeds of $8.25 million from the public offering. It will use these funds for general corporate purposes, debt repayment and more. Investors will also note that the exercise price of the warrants in the offering is the same as the purchase price for the shares.
How This Affects GNS Stock
A public stock offering increases the total number of shares available to trade. Doing so dilutes the stakes of current shareholders in the company. That helps explain why the stock is falling on Friday.
To go along with that is the low sell price of 35 cents per share. That’s a significant discount over the company’s prior closing price of 51 cents per share. It makes sense that this would further drag down the price of GNS stock today.
GNS stock is down 39.6% as of Friday morning.
Investors who are on the lookout for even more of the most recent stock market stories will want to keep reading!
InvestorPlace is home to all of the hottest stock market news that traders need to know about on Friday! A few examples include why shares of Charge Enterprises (NASDAQ:CRGE) and Volcon (NASDAQ:VLCN) stock are 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 Charge Enterprises (CRGE) Stock Up 28% Today?
- Why Is Volcon (VLCN) Stock Up 59% Today?
- 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 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.
