Serve Robotics (NASDAQ:SERV) stock is falling on Tuesday after the food delivery robot company priced a private offering for its shares.
Serve Robotics is selling 2.5 million pre-funded warrants for SERV stock for $6 each. On top of that, each of these warrants comes with one warrant to acquire another share. They are exercisable immediately, expire in five and a half years and have an exercise price of $6.
Serve Robotics is expecting to raise gross proceeds of $15 million from this private offering. Aegis Capital is the exclusive placement agent for the offering. Orrick, Herrington & Sutcliffe LLP acted as counsel to Serve Robotics while Sichenzia Ross Ference Carmel LLP counseled Aegis Capital.
What This Means for SERV Stock
This private offering increases the total number of SERV shares on the market. As a result, it dilutes the stakes of current investors in the company. That’s one reason why SERV stock is falling on Tuesday.
Investors likely aren’t happy about the offering price, either. At $6 per share, the shares are heavily discounted compared to the stock’s prior closing price of $8.77 each. This helps explain why SERV stock is sliding lower on Tuesday.
SERV stock is down 8.2% as of Tuesday morning. That comes with some 27 million shares traded, as compared to a daily average of about 7.4 million shares.
Investors will want to read more of the most recent stock market stories below!
We have all of the hottest stock market news investors need to know about on Tuesday! A few examples include what’s going on with shares of Jaguar Health (NASDAQ:JAGX), AMC Entertainment (NYSE:AMC) and Adial Pharmaceuticals (NASDAQ:ADIL) stock. You can read up on all of this at the following links!
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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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
