COSM - Why Is Agrify (AGFY) Stock Down 50% Today?
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Agrify (NASDAQ:AGFY) stock is on the move Friday as the company’s shares take a beating alongside a public stock offering.
The public offering includes 11,884,615 shares of AGFY stock, 1.5 million pre-funded warrants to purchase shares of the company’s stock, as well as warrants for another 26,769,230 shares of its stock.
The offering price for the stock, which comes bundled with two warrants to purchase additional shares of AGFY stock, is sitting at 65 cents. The price for the pre-funded warrants, which also include two common warrants, is 64.9 cents.
Agrify is expecting to generate $8.7 million in gross proceeds from this public stock offering. The company intends to use these funds for working capital and general corporate purposes. Thay may include replaying debt.
Why AGFY Investors Are Upset
Public stock offerings are almost always a problem for investors as they dilute the company’s outstanding shares. Adding to that, these offerings are almost always at a lower price than what the stock is trading for.
AGFY stock is a perfect example of this as the company’s shares close trading on Thursday at 82 cents each. That’s well above the 65-cent price for shares being sold in this public offering. That’s why the price of AGFY stock is being dragged down today.
Investors will also note heavy trading of AGFY stock with some 3 million shares on the move. That’s well above its daily average trading volume of about 1.8 million shares.
AGFY stock is down 49.1% as of Friday afternoon.
Investors can catch up on all of the latest stock market news below!
InvestorPlace is home to all of the hottest stock market news for Friday! A few examples include what’s going on with shares of Ocugen (NASDAQ:OCGN), Novavax (NASDAQ:NVAX), and Cosmos (NASDAQ:COSM) stock today. You can find out more about these topics at the following links!
More Friday Stock Market News
- OCGN Stock Alert: What to Know About Ocugen’s Latest Phase 3 Clinical Trial
- Why Is Novavax (NVAX) Stock Down 10% Today?
- COSM Stock Alert: What to Know As Cosmos’ Reverse Stock Split Takes Effect
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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