Shineco (NASDAQ:SISI) stock is falling hard on Friday after the agricultural produce company announced the pricing of a public offering for its shares.
This public offering has Shineco selling 1,869,160 shares of SISI stock for $1.07 each. The offering also includes a 45-day option for underwriters to acquire another 280,374 shares at the public offering price.
Shineco is expecting $2 million in gross proceeds from this public offering. The sole book-running manager for the offering is EF Hutton LLC.
How This Affects SISI Stock
A public offering increases the total number of outstanding shares on the market. Doing so also dilutes the stakes of current investors in the company. This is one of the reasons why shares of SISI stock are falling today.
On top of that, traders likely aren’t happy about the $1.07 price for shares in the offering. That’s below the prior closing price of $2.12 per share for SISI stock. It makes sense the stock would fall alongside this discounted public offering price.
SISI stock is down 53.8% as of Friday morning. However, the shares were up 76.7% year-to-date when markets closed on Thursday.
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We have all of the hottest stock market news that traders need to know about on Friday! A few examples include what’s going on with shares of Toyo (NASDAQ:TOYO) and Crown LNG (NASDAQ:CGBS) stock, as well as the biggest pre-market movers this morning. All of this info is ready at the following links!
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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.
