Why Ondas Stock Plummeted Today
Shares of Ondas Holdings (NASDAQ: ONDS) plummeted today and were down by 13% as of 12:05 p.m. EDT on Wednesday, after the company priced a secondary stock offering. The deal, which was announced yesterday, was priced at a significant discount to market prices.
Ondas, a technology company that operates a software-defined radio platform, sold 6.4 million shares at a price of $7 per share, representing a 22% discount from yesterday's closing price. The deal will raise $44.8 million in gross cash proceeds for Ondas, which intends to use the money for working capital and general corporate purposes. It's common for secondary offerings to price at a discount in order to entice investors to purchase shares through the deal, rather than in the open market, but investors might be disappointed with the magnitude of the discount.
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Source Fool.com