Alset Ehome International Stock (AEI): Why The Price Substantially Dropped

By Amit Chowdhry ● Dec 6, 2021
  • The stock price of Alset Ehome International Inc (NASDAQ: AEI) fell by over 30% pre-market today. This is why it happened.

The stock price of Alset Ehome International Inc (NASDAQ: AEI) – a diversified holding company principally engaged through its subsidiaries in the development of EHome communities and other property development, financial services, digital transformation technologies, biohealth activities, and consumer products – fell by over 30% pre-market today. Investors are responding negatively to Alset EHome announcing the pricing of an underwritten public offering totaling $30 million in gross proceeds of $34.5 million in gross proceeds if the over-allotment option is exercised in full. 

The offering consists of common stock, par value $0.001 per share (Common Stock), at a price to the public of $0.60 per share, and pre-funded warrants to purchase shares of Common Stock at a price of $0.599 per pre-funded warrant. And the pre-funded warrants have an exercise price of $0.001 per share.

Plus the company granted the underwriters a 45-day option to purchase additional shares of Common Stock, representing up to 15% of the number of the Shares and the shares underlying the pre-funded warrants sold in the base offering, solely to cover over-allotments, if any.

This Offering is expected to close on December 8, 2021, subject to the satisfaction of customary closing conditions.

Aegis Capital is acting as the sole book-running manager for the Offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.