NXTD Stock: Why It Decreased Today

By Amit Chowdhry ● Sep 15, 2021
  • The stock price of NXT-ID Inc (NASDAQ: NXTD) decreased over 4% pre-market today. This is why it happened.

The stock price of NXT-ID Inc (NASDAQ: NXTD) – a provider of technology products and services for healthcare applications  – decreased over 4% pre-market today. Investors are responding to Nxt-ID announcing today the pricing of an underwritten public offering of 27,887,500 shares of the company’s common stock, which includes 3,637,500 shares to be issued upon the exercise of the underwriters’ over-allotment option, and warrants to purchase up to 27,887,500 shares of the company’s common stock, which includes additional warrants to be issued upon the exercise of the underwriter’s over-allotment option to purchase up to an additional 3,637,500 shares of common stock, at a combined purchase price of $0.45 per share and warrant. 

The warrants have an initial exercise price of $0.495 per share, subject to certain adjustments, and a term of approximately 5 years. And the gross proceeds of the offering to the company, inclusive of proceeds from the full exercise of the over-allotment option, are expected to be approximately $12.5 million, before deducting the underwriting discounts and commissions and other estimated offering expenses. And the company granted the underwriters a 45-day option to purchase up to an additional 3,637,500 shares and warrants to purchase up to an additional 3,637,500 shares of common stock at the public offering price to cover over-allotments, which the underwriters exercised in full. 

The offering is expected to close today, subject to customary closing conditions. And A.G.P./Alliance Global Partners is acting as sole book-running manager for the offering.

The company plans to use the net proceeds from the offering for new product development, working capital and liability reduction purposes.

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