Why Forza X1 Shares Are Plunging Today
Portfolio Pulse from Shivani Kumaresan
Forza X1 Inc (NASDAQ:FRZA) has priced a public offering of 5.33 million shares at $1.50 per share, a 51.9% discount to its closing price on June 9, 2023. The company expects to raise $8 million and plans to use the proceeds for its manufacturing facility and other corporate purposes. Forza also received an initial purchase order from OneWater Marine Inc (NASDAQ:ONEW) for 100 units of its electric monohull boat, potentially generating $12 million in revenue.
June 12, 2023 | 4:05 pm
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Forza X1's public offering is priced at a 51.9% discount, raising $8 million for its manufacturing facility and other corporate purposes. The company also received a $12 million purchase order from OneWater Marine.
The public offering is priced at a significant discount, which has led to a sharp decline in the stock price. However, the company has received a substantial purchase order from OneWater Marine, which could generate significant revenue in the future. The short-term impact is negative due to the discounted offering, but the long-term outlook may improve with the potential revenue from the purchase order.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
OneWater Marine has placed an initial purchase order with Forza X1 for 100 units of its electric monohull boat, potentially generating $12 million in revenue for Forza.
The purchase order placed by OneWater Marine is significant for Forza X1, but its direct impact on OneWater Marine's stock price is uncertain. The order indicates a potential partnership between the two companies, but the short-term impact on OneWater Marine's stock price is neutral.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50