- The stock price of Farmmi Inc (NASDAQ: FAMI) fell from $0.79 to $0.30 (down 62.21%) pre-market. This is why it happened.
The stock price of Farmmi Inc (NASDAQ: FAMI) – an agriculture products supplier in China – fell from $0.79 to $0.30 (down 62.21%) pre-market. This is why it happened. Investors are responding negatively to the company announcing the pricing of an upsized underwritten public offering with gross proceeds to the company expected to be approximately $42 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the company.
The public offering equates to 140 million of the company’s ordinary shares at a 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. Plus the closing of the offering is expected to occur on May 3, 2021, subject to customary closing conditions.
Farmmi has also granted the underwriter a 45-day option to purchase up to an additional 15% of the number of ordinary shares offered in the public offering to cover over-allotments (if any) – which would increase the total gross proceeds of the offering to approximately $48.3 million, if the over-allotment option is exercised in full.
Aegis Capital is acting as the sole book-running manager for the offering.
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