LuxUrban Hotels (NASDAQ:LUXH) stock is taking a beating on Monday after the home leasing and rental company priced a public offering of its shares.
LuxUrban Hotels priced 11,573,333 shares of LUXH stock at 15 cents each in this public offering. It also granted the underwriters of the offering a 30-day option to acquire another 15% of shares sold in this offering.
LuxUrban Hotels is expecting gross proceeds of $1,736,000 or $1,996,400 from this offering depending on if rights are exercised. The company says it intends to use these funds for working capital and other general corporate purposes.
What This Means for LUXH Stock
A public offering increases the total number of outstanding shares on the market. That means it dilutes the stakes of current investors in LUXH. This is one of the reasons why LuxUrban Hotels stock is dropping today.
On top of that is the company’s stock price of 15 cents per share in the offering. That’s a decent discount over its prior closing price of 19 cents per share. It makes sense the stock would fall with this offering devaluing LUXH shares.
LUXH stock is down 12.2% as of Monday morning.
There are plenty more stock market stories traders will want to read about below!
We have all of the hottest stock market news investors need to know about on Monday! That includes everything happening with shares of vTv Therapeutics (NASDAQ:VTVT) stock, Lipella Pharmaceuticals (NASDAQ:LIPO) stock and Planet Image (NASDAQ:YIBO) stock today. All of this news is ready to go at the links below!
More Stock Market News for Monday
- Why Is vTv Therapeutics (VTVT) Stock Down 46% Today?
- Why Is Lipella Pharmaceuticals (LIPO) Stock Up 149% Today?
- Why Is Planet Image (YIBO) Stock Up 53% Today?
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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.
