Why Polar Power Stock (POLA) Is Down 50% Today
Portfolio Pulse from Henry Khederian
Polar Power Inc (NASDAQ:POLA) stock plummeted by 50% to $0.42 after announcing a public offering of 4 million shares at $0.40 each, with potential for an additional 600,000 shares or pre-funded warrants. The offering aims to raise $1.6 million and is expected to close on December 5, with ThinkEquity as the exclusive underwriter. The stock has a 52-week range of $0.40 to $2.22.
December 01, 2023 | 4:24 pm
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Polar Power's stock price has halved due to the pricing of its public offering well below the previous day's closing price, indicating significant dilution for existing shareholders.
The substantial drop in Polar Power's stock price is a direct result of the public offering being priced at $0.40 per share, which is significantly lower than the market price prior to the announcement. This indicates a dilutive effect on current shareholders and could be perceived negatively by the market, leading to a bearish outlook in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100