On Thursday, we warned that aerospace start-up Lilium (NASDAQ: LILM) was likely to go to market with a capital raise in the near future. On Friday, the company did indeed launch a secondary offering.
Investors were apparently not prepared for the move, leading shares of Lilium to fall as much as 10.6% in Friday trading. As of 1:32 p.m. ET, the stock was down 9.3%.
Lilium is focused on designing and manufacturing electric-powered vertical takeoff and landing (eVTOL) aircraft. It is a potentially exciting new technology and could be a green way to bypass traffic jams and replace fuel-guzzling small planes, but the technology is still in the early stages of development and there is a lot of competition.
Source Fool.com