Why Crypto-Related Stock SOS Limited Is Getting Hammered
Portfolio Pulse from Henry Khederian
SOS Ltd – ADR (NASDAQ:SOS) shares plummeted 30% to $1.49 after announcing a public offering of $7.85 million in ADSs and warrants. The offering includes 5,233,332 ADSs and warrants for an additional 10,466,664 ADSs at $1.50 each, exercisable immediately with a five-year term. The proceeds are aimed at funding cloud cryptocurrency mining, security, insurance, and general corporate purposes, with Maxim Group LLC as the placement agent. The offering is expected to close by March 15.
March 13, 2024 | 3:05 pm
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SOS Ltd's stock plummeted 30% following the announcement of a public offering, indicating dilution for existing shareholders.
The significant drop in SOS Ltd's stock price is directly related to the announcement of a public offering, which typically leads to dilution of existing shares. The immediate exercisability of the warrants at a price close to the current trading price suggests potential further dilution, negatively impacting the stock's short-term price.
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