JanOne Will Issue To The Former Stockholders Of ALT 5 1,799,100 Shares Of Its Common Stock, Or ~19.9% Of JanOne's Will Issue To The Outstanding Stock As Of May 10, And 34,207 Shares Of Its Series B Non-Convertible, Non-Redeemable Preferred Stock
Portfolio Pulse from Benzinga Newsdesk
JanOne announced it will issue approximately 19.9% of its outstanding common stock, totaling 1,799,100 shares, and 34,207 shares of its Series B non-convertible, non-redeemable preferred stock to the former stockholders of ALT 5 as of May 10.
May 10, 2024 | 8:15 pm
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JanOne's issuance of 1,799,100 common shares and 34,207 Series B preferred shares to ALT 5's former stockholders represents a significant equity action, diluting current shareholders' stakes by approximately 19.9%.
Issuing a significant number of new shares typically dilutes the value of existing shares, potentially leading to a negative short-term impact on the stock price. The dilution effect is substantial, representing nearly 20% of the outstanding stock, which could lead to a decrease in stock price as the market absorbs the new shares.
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IMPORTANCE 90
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