Sequans Communications Said: On Sept 26, Entered Into Securities Purchase Agreement With 272 Capital Master Fund; Under Agreement, Co To Issue An Aggregate Of 2.1M ADSs At $2.83/ADS
Portfolio Pulse from Charles Gross
Sequans Communications has entered into a securities purchase agreement with 272 Capital Master Fund. Under the agreement, Sequans will issue an aggregate of 2.1 million American Depositary Shares (ADSs) at $2.83 per ADS.
October 02, 2023 | 9:02 pm
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NEGATIVE IMPACT
Sequans Communications' agreement to issue 2.1M ADSs could potentially dilute existing shareholders' equity, which may negatively impact the stock price in the short term.
The issuance of new shares often leads to dilution of existing shareholders' equity. This can result in a decrease in the stock's price as the market adjusts to the increased number of shares. However, the actual impact will depend on how the market perceives the company's use of the raised capital.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100