- The stock price of Celsius Holdings, Inc. (NASDAQ: CELH) fell by over 14% pre-market. This is why it happened.
The stock price of Celsius Holdings, Inc. (NASDAQ: CELH) – the maker of global fitness drink CELSIUS – fell by over 14% pre-market. Investors are responding negatively to the company announcing the commencement of an underwritten public offering of 6,518,267 shares of common stock, consisting of 5,518,267 shares of common stock offered by certain selling stockholders of Celsius Holdings and 1 million shares of common stock offered by Celsius Holdings.
Plus certain selling stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 977,740 shares of common stock. Celsius Holdings is not going to receive any proceeds from the sale of common stock offered by the selling stockholders. The offering is subject to market and other conditions.
Celsius Holdings plans to use the net proceeds received by it from the offering for general corporate purposes. UBS Investment Bank and Jefferies are serving as joint book-running managers for the offering.
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