Why Akoustis Technologies (AKTS) Stock Is Nosediving
Portfolio Pulse from Henry Khederian
Akoustis Technologies Inc (NASDAQ:AKTS) stock plummeted 30.6% to $0.49 after announcing a public offering of 20 million shares at $0.50 each, aiming to raise $10 million. The offering, managed by Roth Capital Partners, will fund operations, growth, and R&D. The underwriters have an option for an additional 3 million shares, with the offering's closing expected around January 29.
January 25, 2024 | 3:05 pm
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Akoustis Technologies' stock price dropped significantly due to the pricing of its public stock offering at a discount, which dilutes current shareholders' equity.
The substantial drop in AKTS stock price is a direct result of the public offering announcement, which is priced below the current market value, leading to dilution of existing shares. This typically results in 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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