Shares of Ammo (NASDAQ: POWW) -- the little ammunition manufacturer that came out of nowhere at the start of 2021, first doubling its market capitalization, then tripling, then nearly quadrupling it -- are falling today. Shares are down 14.2% in 11:05 a.m. EST trading after Ammo announced plans to raise $100 million from a stock offering.
But give Ammo credit: It got the order right. First, announce strong guidance for future numbers. Then, after the stock price has risen -- cash in.
In today's announcement, Ammo says it will sell 20 million shares for $5 apiece, raising an even $100 million "before deducting underwriting discounts and commissions and estimated offering expenses." The company could even raise a bit more than that -- $15 million more -- if underwriters exercise their overallotment options to buy 3 million more shares.
Source Fool.com