SIDU - Why Is Sidus Space (SIDU) Stock Down 59% Today?
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Sidus Space (NASDAQ:SIDU) stock is falling on Tuesday after the satellite company revealed the pricing of its public offering.
That public offering has Sidus Space selling 15,000,000 shares of its Class A common stock or pre-funded warrants. These shares are priced at 30 cents each, which is a significant discount from yesterday’s closing price of 89 cents.
In addition to this, Sidus Space is allowing underwriters of the public offering to obtain an additional 2.25 million shares. This option last for 45 days and the shares are priced the same as in the public offering.
Sidus Space notes it expects to raise $4.5 million in gross proceeds from the SIDU stock offering. The company will use these funds for “sales and marketing, operational costs, product development, manufacturing expansion,” as well as working capital and general corporate purposes.
What Has SIDU Stockholders Upset Today
Investors typically don’t react well to news of a public stock offering, and SIDU isn’t immune to this. That comes as shareholders watch their stakes in a company shrink alongside the introduction of new shares. Also, the company devalues its shares by offering them at a below-market price.
With today’s news comes heavy trading of SIDU stock. This has some 6 million shares on the move as of this writing. For comparison, the company’s daily average trading volume is closer to 481,000 shares.
SIDU stock is down 59.4% as of Tuesday morning.
Investors searching for all of the latest stock market news are in luck!
We’ve got all of that news ready to go in one place for them! A few examples include what has shares of ContraFect (NASDAQ:CFRX) and Motorsport Games (NASDAQ:MSGM) stock rising, as well as this morning’s biggest pre-market stock movers. You can find all that news at the links below!
More Tuesday Stock Market News
- Why Is ContraFect (CFRX) Stock Up 20% Today?
- Why Is Motorsport Games (MSGM) Stock Up 182% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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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