Why Is Ryvyl (RVYL) Stock Down 10% Today?


  • Ryvyl (RVYL) stock is falling on Tuesday after announcing a proposed public offering.
  • The company hasn’t yet priced the shares in the offering.
  • Even so, investors are worried about dilution.
RVYL Stock - Why Is Ryvyl (RVYL) Stock Down 10% Today?

Source: Marko Aliaksandr/ShutterStock.com

Ryvyl (NASDAQ:RVYL) stock is falling on Tuesday after the blockchain-based payment solutions company announced a proposed public offering for its shares.

Ryvyl hasn’t pinned down the specific details of this offering just yet. That means we don’t know how many shares it will include or what they will be priced at.

What we do know about the RVYL stock offering is an agreement with the underwriter. This allows the firm to purchase an additional 15% of the number of shares offered for the same price. Underwriter Joseph Gunnar & Co., LLC will have 45 days after the offering to exercise this right.

What This Means for RVYL Stock

Investors are often wary of public stock offerings for a couple of reasons. The first is the ability of the offering to dilute their stakes in the company. That’s due to it introducing new outstanding shares to the market.

The second reason investors don’t react well to public offerings is the pricing. Shares sold this way are often discounted from current prices, which causes the stock to drop and isn’t well received by stockholders. That concern is still true for this offering, even if we don’t know the price of it just yet.

RVYL stock is down 9.8% as of Tuesday morning with some 144,000 shares traded. The company’s daily average trading volume is below that at roughly 26,000 shares.

There are more stock market stories traders will want to read about below!

We have all of the hottest stock market news ready to go on Tuesday! A few examples include what’s rising shares of Dragonfly Energy (NASDAQ:DFLI) and Dynatronics (NASDAQ:DYNT) stock, as well as the biggest pre-market stock movers. All of this news is available at the following links!

More Tuesday Stock Market News

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

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.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/why-is-ryvyl-rvyl-stock-down-10-today/.

©2024 InvestorPlace Media, LLC