GROM - Why Is Grom Social Enterprises (GROM) Stock Down 30% Today?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Grom Social Enterprises (NASDAQ:GROM) stock is falling on Wednesday after the company revealed details of a private placement.
According to a press release, the company has reached an agreement with an institutional investor. This covers the sale of 1,327,434 shares of GROM stock and warrants to purchase of another 2,323,010 shares.
Grom Social Enterprises notes that each of the shares purchased comes with warrants for another share of GROM stock. These warrants are immediately exercisable for $2.26 per share, which is the same purchase price for units sold in the private placement.
Grom Social Enterprises says it expects to raise $3 million from the private placement when it closes on Jan. 27, 2023. The company will use the funds from the private placement for general working capital and administrative purposes.
Why This Is Dropping GROM Stock
Investors aren’t keen on seeing their stakes in a company diminish alongside stock offerings. As such, it makes sense that the company’s stock would take a beating after revealing plans to sell shares to an institutional investor.
As far as trading goes, Grom Social Enterprises isn’t seeing as much as traders might expect today. In pre-market trading hours today, around 1.4 million shares of GROM stock have changed hands. That’s still below its daily average trading volume of about 2.5 million shares.
GROM stock is down 30% in pre-market trading on Wednesday!
Investors can check out more of the latest stock market news below!
InvestorPlace is home to all of the hottest stock news traders need to know about on Wednesday! That includes all of the news today concerning Waitr (NASDAQ:ASAP), Esports Entertainment (NASDAQ:GMBL), and Inpixon (NASDAQ:INPX) stock. You can get up to speed on that news at the following links!
More Wednesday Stock Market News
- Why Is Waitr (ASAP) Stock Down 23% Today?
- Why Is Esports Entertainment (GMBL) Stock Up 27% Today?
- Why Is Inpixon (INPX) Stock Up 31% Today?
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.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that? InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More:?Penny Stocks — How to Profit Without Getting Scammed
More From InvestorPlace
- Buy This $5 Stock BEFORE This Apple Project Goes Live
- The Best $1 Investment You Can Make Today
- It doesn’t matter if you have $500 or $5 million. Do this now.
- Early Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air”
The post Why Is Grom Social Enterprises (GROM) Stock Down 30% Today? appeared first on InvestorPlace.