InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Source: krolya25 / Shutterstock.comFans of Eargo (NASDAQ:EAR) stock will want to keep an eye on the company when Oct. 20 rolls around as they prepare for a rights offering.
Oct. 20, which is this coming up Thursday, is the last day shareholders can be on record for the upcoming rights offering. That offering is set to take place just a few days later on Oct 24. Investors need to be on record to take part in the rights offering.
That rights offering will see Eargo offer up rights to purchase as much as 375,000,000 shares at a subscription price of 50 cents each. The company intends to generate $187.5 million in aggregate gross proceeds from this offering.
What Will Happen to Those Funds?
Eargo has already laid out its full plans for the money it makes from this offering. The most important use will be the repayment of outstanding notes issued to Patient Square Capital. It intends to use a substantial amount of the money for this purpose.
For some background, Eargo entered an agreement to issue those senior notes on June 28, 2022. This saw it $100 million worth of notes to an affiliate of Patient Square Capital. The agreement included approval from shareholders for the rights offering.
EAR stock is down 4.4% as of Friday afternoon.
Investors looking for more of the hottest stock market news will want to keep reading!
InvestorPlace has all of the latest stock market news traders need to know about for Friday! Among that is why shares of Castellum (NYSEMKT:CTM), Revlon (NYSE:REV), and UnitedHealth (NYSE:UNH) are in the news today. You can read up on all of that at the following links!
More Friday Stock Market News
- What Is Going on With Castellum (CTM) Stock Today?
- 5 Investors Betting Big on Revlon (REV) Stock
- UnitedHealth (UNH) Stock Pops on Raised Outlook
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.
More From InvestorPlace
- Buy This $5 Stock BEFORE This Apple Project Goes Live
- The Best $1 Investment You Can Make Today
- Early Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air”
- It doesn’t matter if you have $500 or $5 million. Do this now.
The post Dear EAR Stock Fans, Mark Your Calendars for Oct. 20 appeared first on InvestorPlace.