ShiftPixy (NASDAQ:PIXY) stock is falling on Tuesday after the staffing solutions company announced pricing for a reasonable best efforts offering of its shares.
This offer includes 1,176,470 units being sold for $4.25 each. These units each come with one share of PIXY stock and a warrant to acquire another share. The exercise price of the warrants is the same as the purchase price of the unit.
The offering also includes an option for investors to acquire pre-funded warrants instead of shares. These have no expiration date, as compared to the normal warrants expiring five years after being issued. Both are immediately exercisable.
ShiftPixy notes that it expects to generate $5 million from this stock offering. It will use these funds for general corporate purposes, such as working capital.
How This Affects PIXY Stock
The price of PIXY shares in this offering is below its previous closing price of $6.80 per share. It makes sense that the discounted price would drag down the value of shares already on the market.
It’s also worth adding that this increases the total number of PIXY shares outstanding. Doing so dilutes the stakes of current shareholders. That’s another reason the stock is falling today.
PIXY stock is down 22.1% as of Tuesday morning but was up 24.8% when markets closed on Monday.
There are more stock market stories traders need to know about below!
We have all of the hottest stock market news worth reading about on Tuesday! That includes what’s going on with shares of Greenwave Tech Solutions (NASDAQ:GWAV) stock, Ontrak (NASDAQ:OTRK) stock and Canoo (NASDAQ:GOEV) stock today. You can find out more on these matters at the following links!
More Stock Market News for Tuesday
- Why Is Greenwave Tech Solutions (GWAV) Stock Down 53% Today?
- Why Is Ontrak (OTRK) Stock Up 105% Today?
- Trade of the Day: How to Profit from the Surge in Canoo (GOEV) Stock
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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.
