- The stock price of Farmmi Inc (NASDAQ: FAMI) fell by 13.9% as it went from $0.52 to $0.45 today. This is why it happened.
The stock price of Farmmi Inc (NASDAQ: FAMI) fell by 13.9% as it went from $0.52 to $0.45 today. One of the catalysts for the stock price drop is an announcement from the company.
Yesterday, Farmmi announced that it has completed an upsized underwritten public offering with gross proceeds to the company expected to be approximately $48.3 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the company.
The offering was upsized from a $35 million base to a $42 million base with an aggregate offering of $48.3 million, including the successful execution of the over-allotment.
This offering included 140 million of the company’s ordinary shares and 21 million additional shares from the exercise of the underwriter’s option to purchase such shares to cover over-allotments at the public offering price of $0.30 per share. And the company intends to use the net proceeds from this offering for working capital and general corporate purposes.
Aegis Capital had acted as the sole book-running manager for the offering.
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