JUPW Stock Fell Over 20% Pre-Market: Why It Happened

By Amit Chowdhry ● July 22, 2021
  • The stock price of Jupiter Wellness Inc (NASDAQ: JUPW) fell by over 20% pre-market. This is why it happened.

The stock price of Jupiter Wellness Inc (NASDAQ: JUPW) fell by over 20% pre-market. Investors are responding negatively to Jupiter Wellness announcing the pricing of an underwritten public offering of 11,066,258 shares of common stock, par value $0.001 per share to be issued by the company, 540,884 shares of Common Stock to be issued by certain selling stockholders of the company and warrants to buy up to 11,607,142 shares of common stock, at a price to the public of $2.79 per company offering share/selling stockholder share and $0.01 per company warrant. 

The company warrants will be exercisable immediately upon issuance with the exercise price of 2.79 per share and will expire on the fifth anniversary of the original issuance date. And the gross proceeds from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be $32.5 million.

Plus the company and the selling stockholders granted the underwriters a 45-day option to purchase additional shares of common stock, representing 15% of the number of shares of common stock sold in the base offering and additional company warrants, representing up to 15% of the company warrants sold in the base offering, solely to cover over-allotments (if any) — which would increase the total gross proceeds of the offering to approximately $37.4 million, if the over-allotment option is exercised in full.

The offering is expected to close on July 26, 2021, subject to the satisfaction of customary closing conditions.

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