MVIS Stock Price Falls Over 10% Pre-Market: Why It Happened

By Amit Chowdhry ● June 22, 2021
  • The stock price of Microvision, Inc. (NASDAQ: MVIS) fell by over 10% pre-market. This is why it happened.

The stock price of Microvision, Inc. (NASDAQ: MVIS) fell by over 10% pre-market. Investors are responding negatively to MicroVision announcing it entered into a $140 million At-the-Market (ATM) equity offering agreement with Craig-Hallum Capital Group.

Under the terms of the deal MicroVision may from time to time at its discretion offer and sell shares of its common stock having an aggregate value of up to $140 million through Craig-Hallum. And MicroVision intends to use the net proceeds from the ATM (if any) for general corporate purposes — which may include working capital and capital expenditures as MicroVision continues to pursue its strategy to enhance shareholder value.

Under the ATM equity offering sales agreement, sales of common stock (if any) through Craig-Hallum will be made by means of ordinary brokers’ transactions in negotiated transactions to or through a market maker other than on an exchange or otherwise at market prices prevailing at the time of sale, at prices related to such prevailing market prices, or at negotiated prices and/or any other method permitted by law.

The common stock is going to be offered under MicroVision’s effective shelf registration statement filed February 16, 2021 with the Securities and Exchange Commission (SEC), which includes a base prospectus and a prospectus supplement relating to the offering. 

KEY QUOTE:

“I am proud of the progress our Company has made advancing our automotive lidar program. We look forward to more broadly promoting our technology to OEM and Tier 1 suppliers and publicly testing our sensor with external test-site partners. A strong balance sheet gives our potential customers and partners confidence that MicroVision is a capable and trusted long-term supplier.”

— Sumit Sharma, MicroVision Chief Executive Officer

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