Phunware shares are trading lower after the company announced pricing of a $7 million registered direct offering price at-the-market under Nasdaq rules.
Portfolio Pulse from Benzinga Newsdesk
Phunware Inc. has announced a registered direct offering priced at-the-market under Nasdaq rules, amounting to $7 million. This has led to a decline in the company's share price.
January 17, 2024 | 1:48 pm
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Phunware's stock is trading lower following the announcement of a $7 million registered direct offering priced at-the-market, which may dilute existing shareholders' equity.
The announcement of a registered direct offering typically leads to concerns about share dilution, which can cause a short-term negative impact on the stock price. Given that the offering is priced at-the-market, it suggests that the new shares are being sold at current market prices, which does not provide a premium to existing shareholders and can be viewed negatively by the market.
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