ASP Isotopes (NASDAQ:ASPI) stock is down on Friday after the development stage advanced materials company announced a proposed public offering for its shares.
The company hasn’t revealed the finer details of this offering yet. That means we don’t know how many shares it will include, what they will be priced at, nor how much it expects to raise from the offering.
We know that ASP Isotopes intends to offer an additional 15% of shares in the offering to underwriters. This will give sole bookrunner Canaccord Genuity 30 days after the offering to acquire ASPI shares at the offering price.
What This Means for ASPI Stock
A public offering will increase the total number of ASPI shares on the public market. Doing this will also dilute the stakes of investors in the company. This is one of the reasons why the stock is falling on Friday.
Additionally, the shares in the public offering are likely to be discounted from the stock’s prior closing price. This has investors anticipating that discount, which helps explain why the stock is down when the price hasn’t been announced yet.
ASPI stock is down 19.4% as of Friday morning. The shares are up 104.6% since the start of the year.
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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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
