ToughBuilt Industries Plunges Following $4.5M Equity Offering
Portfolio Pulse from Shivani Kumaresan
ToughBuilt Industries has priced a public offering of 10.97 million shares and warrants at $0.41 per share, expecting to raise $4.5 million in gross proceeds. The company plans to use the funds for general corporate purposes, including working capital. TBLT shares are trading lower by 47% at $0.2960.
June 21, 2023 | 2:41 pm
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NEGATIVE IMPACT
ToughBuilt Industries' public offering of 10.97 million shares at $0.41 per share is expected to raise $4.5 million. Shares are trading lower by 47% at $0.2960.
The public offering is diluting the value of existing shares, causing the stock price to drop significantly. The funds raised will be used for general corporate purposes, including working capital, which may benefit the company in the long run. However, the short-term impact on the stock price is negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100