SoundHound AI (NASDAQ:SOUN) stock is falling on Wednesday after investors learned that the voice artificial intelligence (AI) solutions company is preparing a secondary offering.
A filing with the Securities and Exchange Commission (SEC) reveals that SoundHound AI is planning an at-the-market equity offering for up to $150 million worth of shares of SOUN stock. The company doesn’t intend to offer these shares all at once and will instead do so at its discretion.
All proceeds from these SOUN stock sales will see the company pay 2.5% to the offering’s managers. These are Citigroup Global Markets, Barclays Capital, Wedbush Securities, Northland Securities and Ladenburg Thalmann & Co.
How This Affects SOUN Stock
A secondary offering of SOUN stock will result in dilution of the company’s outstanding shares. This has investors in the company worried about their stakes in the company shrinking alongside this offering. This is a common concern for investors when a company offers more shares of its stock.
With that weight on SOUN stock today, the company’s shares are down 8.6% as of Wednesday morning. This comes with some 19.5 million shares traded. The company’s daily average trading volume is about 62 million shares.
There are even more stock market stories worth reading about below!
We have all of the hottest stock market news ready to go on Wednesday. That includes everything happening with shares of Jaguar Health (NASDAQ:JAGX) stock, Alibaba (NYSE:BABA) stock and Novartis (NYSE:NVS) stock today. You can catch up on all of this news by checking out the following links!
More Wednesday Stock Market News
- What Is Going on With Jaguar Health (JAGX) Stock Today?
- Jack Ma Is Giving Alibaba (BABA) Stock a Big Boost
- Novartis Layoffs 2024: What to Know About the Latest NVS Job Cuts
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.
