Why UTime (WTO) Stock Is Down 17% Today
Portfolio Pulse from Henry Khederian
UTime (NASDAQ:WTO) shares dropped 16.8% to $0.64 after announcing a $5 million direct offering at $0.65 per share. The company also executed a 1-for-25 reverse share split to meet Nasdaq's $1.00 minimum bid price requirement.
September 13, 2024 | 3:15 pm
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UTime's stock fell 16.8% due to a $5 million direct offering and a 1-for-25 reverse share split. The offering price is $0.65 per share, and the reverse split aims to meet Nasdaq's $1.00 minimum bid price requirement.
The direct offering at $0.65 per share is close to the current trading price, which can dilute existing shares and pressure the stock price. The reverse split is a technical move to meet listing requirements, but it often signals financial distress, contributing to the negative sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100