TAT Technologies Announces $9.8M Proposed Private Placement Of 1,158,600 Ordinary Shares, For A Purchase Price Of $8.60 Per Share To Israeli Institutional And Accredited Investors
Portfolio Pulse from Benzinga Newsdesk
TAT Technologies Ltd. (NASDAQ:TATT) has announced a private placement of 1,158,600 ordinary shares at a price of $8.60 per share, raising approximately $9.8 million from Israeli institutional and accredited investors. The shares will represent about 11.5% of the company's post-sale outstanding shares. The proceeds are intended for general corporate purposes, with the transaction expected to close by December 31, 2023.
December 15, 2023 | 2:48 pm
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TAT Technologies is raising $9.8M through a private placement of shares, which will dilute current shareholders by approximately 11.5%.
The announcement of a private placement typically leads to short-term negative sentiment as it dilutes existing shareholders' equity. The dilution of 11.5% is significant, and while the capital raise is for general corporate purposes, which could be positive in the long term, the immediate impact is likely to be negative on the stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100