Sidus Space (NASDAQ:SIDU) stock is falling hard on Tuesday after the space-as-a-service company revealed details about a public offering to investors.
According to a press release from Sidus Space, it will offer 1.25 million shares of SIDU stock to the public at a price of $4.50 apiece. That has the company expecting to generate around $5.63 million in gross proceeds from the offering.
Sidus Space also notes that it already has plans for the money generated by this public offering. The company intends to use it for working capital and general corporate purposes.
The Sidus Space public offering is set to close on Thursday. Also worth mentioning is ThinkEquity acting as the sole book-running manager for the offering.
How This Affects SIDU Stock
A public offering increases the total number of shares available on the market. Doing so also dilutes the stakes of current investors in the company. With that in mind, it makes sense that SIDU stock would fall on Tuesday.
To go along with that, the public offering price of $4.50 per share is a significant discount over its prior closing price of $8.70 per share. The price difference here explains why shares of SIDU stock are falling to closer match the public offering price.
SIDU stock is down 44.4% as of Tuesday morning!
Investors can find even more of the latest stock market coverage ready to go below!
We’re offering insight into all of the biggest topics on Tuesday! A few examples include why shares of Agrify (NASDAQ:AGFY), General Motors (NYSE:GM) and Agape ATP (NASDAQ:ATPC) stock are moving today. You can catch up on all of this news at the following links!
More Tuesday Stock Market News
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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.
