Nexalin Technology (NASDAQ:NXL) stock is down on Friday after the medical device company priced a public offering of its shares.
Nexalin Technology is selling 3 million shares of NXL stock for $1.75 each in this public offering. This has the company expecting gross proceeds from the offering to come in at $5.25 million.
Nexalin Technology notes that Maxim Group LLC is acting as the sole placement agent for the offering. The company is also expecting this offering to close on Monday.
What This Means for NXL Stock
With this public offering comes an increase in the total number of outstanding shares of NXL stock. This will also dilute the stakes of current investors in the company. That’s one of the reasons why Nexalin Technology is seeing its share price fall today.
In addition to that, the price of the shares in the offering is a significant discount over its prior closing price. The company’s shares closed out Thursday at $2.96 per share. It makes sense that shares of NXL shares would drop when the shares in the offering are being sold at such a lower price.
NXL stock is down 35.1% as of Friday morning. This comes with more than 955,000 shares traded. The company’s daily average trading volume is closer to 2.9 million shares.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
