Why Treasure Global Stock (TGL) Is Down 50% Today
Portfolio Pulse from Henry Khederian
Treasure Global Inc (NASDAQ:TGL) stock plummeted by 50% to $0.10 after announcing a public offering of approximately 26 million shares at $0.10 each, and 14 million pre-funded warrants at $0.0999 each. The offering aims to raise about $4.0 million before expenses, with an additional option for underwriters to purchase up to 6 million shares or warrants. EF Hutton, part of Benchmark Investments, LLC, is managing the offering, which is expected to close on November 30, subject to standard conditions. TGL's 52-week trading range is between $0.10 and $3.18.
November 29, 2023 | 7:41 pm
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Treasure Global Inc's stock price has halved due to the pricing of its public offering well below the previous trading price, indicating significant dilution for existing shareholders.
The substantial drop in TGL's stock price is a direct result of the public offering pricing, which is significantly lower than the stock's recent trading levels. This dilutes the value of existing shares and typically leads to a negative short-term price impact as investors adjust to the new equity value.
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