Why EV Stock Vicinity Motor (VEV) Is Falling
Portfolio Pulse from Henry Khederian
Vicinity Motor Corp (NASDAQ:VEV) shares fell by 12.8% to $0.56 after the company announced a $2.5 million registered direct offering. The offering includes 4,807,692 common shares and warrants to purchase an additional 4,807,692 shares at a combined price of $0.52 per share and warrant. The funds will be used for working capital and general corporate purposes.
July 16, 2024 | 3:51 pm
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Vicinity Motor Corp (NASDAQ:VEV) shares fell by 12.8% to $0.56 after the company announced a $2.5 million registered direct offering. The offering includes 4,807,692 common shares and warrants to purchase an additional 4,807,692 shares at a combined price of $0.52 per share and warrant. The funds will be used for working capital and general corporate purposes.
The announcement of a registered direct offering typically dilutes existing shares, leading to a drop in share price. The 12.8% decline reflects investor reaction to the dilution and the pricing of the new shares and warrants.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100