Why EVgo Stock Tanked on Monday
Shares of EVgo (NASDAQ: EVGO) have tanked today, down by 15% as of 2 p.m. EDT, after the company made a regulatory filing to register millions of shares to be issued in connection to the exercise of warrants. The filing comes about a month after the electric vehicle (EV) charging network closed its merger with a special-purpose acquisition company (SPAC).
EVgo has registered up to 18.1 million new shares that are issuable upon the exercise of public warrants. Additionally, the company is registering another 52.35 million shares that can be sold by existing shareholders and another 6.6 million private warrants. Any new shares that are issued related to warrant exercise will be dilutive to existing investors, while shares sold from early investors will not be.
Image source: EVgo.
Source Fool.com
