Why KULR Technology Group Shares Are Down 27%
Portfolio Pulse from Henry Khederian
KULR Technology Group Inc's stock (NASDAQ:KULR) fell 27.5% after announcing a public offering of 4.5 million shares at $0.20 each, aiming to raise $900,000. The offering includes an option for the underwriter to buy an additional 675,000 shares. Proceeds will be used to settle debts and for general corporate purposes. R.F. Lafferty & Co., Inc. is the book-running manager. The offering is expected to close on December 22.
December 20, 2023 | 2:23 pm
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KULR Technology Group Inc's shares plummeted after pricing a public offering well below recent trading levels, indicating dilution and raising concerns about the company's capital position.
The significant drop in KULR's stock price is a direct result of the public offering pricing, which is below the current market price and indicates dilution of existing shares. This typically leads to a negative short-term impact on the stock price as investors adjust to the increased share count and reduced equity value per share.
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