Volcon (NASDAQ:VLCN) stock is falling on Thursday after the electric off-road power sports vehicle maker filed a notice of effectiveness for a public share offering.
According to a filing with the Securities and Exchange Commission, the company is selling up to 19,565,217 shares of VLCN stock in this offering. Investors will also note that the assumed price for shares in this offering is 92 cents each.
Volcon notes that each share in this offering also comes with .35 warrants. These warrants will allow holders to purchase one additional share of VLCN stock.
What This Means for VLCN Stockholders
Investors don’t often react well to news of a public offering and that’s holding true today. As of this writing, more than 246,000 shares of VLCN stock are changing hands alongside the news. For the record, the company’s daily average trading volume is about 64,000 shares.
Oftentimes, the low offering price upsets investors. They also don’t like the increase in outstanding shares, which dilutes their current stakes in the company.
VLCN stock is down 36.5% as of Thursday morning.
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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.
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