EZGO Technologies Slumps After $8.5M Equity Offering
Portfolio Pulse from Shivani Kumaresan
EZGO Technologies has entered into a securities purchase agreement to sell 10 million shares at $0.85 per unit, raising approximately $8.47 million. The company plans to use the proceeds for working capital and general business purposes. EZGO shares are trading lower by 10.5% at $1.36 in premarket.
June 06, 2023 | 11:47 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
EZGO Technologies' equity offering of 10 million shares at $0.85 per unit is expected to raise $8.47 million. Shares are trading 10.5% lower at $1.36 in premarket.
The equity offering is dilutive to existing shareholders, which is causing the stock price to drop in the short term. The funds raised will be used for working capital and general business purposes, which could benefit the company in the long run, but the immediate impact on the stock price is negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100