Phoenix Motor Inc. Announces Pricing Of $4.8M Registered Direct Offering At Combined Purchase Price Of $1.15 Per One Share And Each Warrant
Portfolio Pulse from Benzinga Newsdesk
Phoenix Motor Inc. has announced a registered direct offering priced at $4.8 million. The offering includes one share and one warrant, each at a combined purchase price of $1.15. This capital raise could dilute current shareholders but also provides the company with additional funds for operations or growth.
January 30, 2024 | 2:04 pm
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Phoenix Motor Inc.'s direct offering may lead to dilution of existing shares but provides capital for potential growth. Short-term impact on stock price could be negative due to dilution concerns.
Direct offerings often result in dilution of existing shares, which can lead to a decrease in stock price as the market absorbs the new shares. However, the additional capital can be positive if used effectively for growth, which may mitigate the negative impact over time.
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