Phunware (NASDAQ:PHUN) stock is taking a beating on Friday after the integrated software platform company announced a registered direct offering of its shares.
According to a press release from Phunware, the offering includes 56 million shares of PHUN stock priced at 10 cents each. There’s also an option for investors to acquire pre-funded warrants instead of shares of the company’s common stock.
Phunware is expecting the gross proceeds from this offering to come in at $5.6 million. It will use this money for working capital and other general corporate purposes. That includes expanding product initiatives, funding strategic opportunities and other uses.
How This Affects PHUN Stock
With this newest offering comes an increase in the number of outstanding shares of PHUN stock. It’s also priced below the prior closing price of 24 cents. Both of these are reasons why the stock is falling on Friday.
Investors will also note that Phunware is among the companies tied to former President Donald Trump. With Trump’s recent successes in the 2024 presidential race comes increased trading activity for stocks connected to him.
That higher trading activity has some 193 million shares of PHUN stock on the move today. For the record, its daily average trading volume is about 49 million shares.
PHUN stock is down 22.2% as of Friday morning.
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We’re offering insight into all of the biggest stock market news that traders need to know about on Friday! That includes everything happening with shares of iRobot (NASDAQ:IRBT), Macy’s (NYSE:M) and Wayfair (NYSE:W) stock today. You can find out more on these matters at the following links!
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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.
