Why Pagaya Technologies Stock Tumbled This Week
Pagaya Technologies (NASDAQ: PGY) didn't make its investors happy this week. On the announcement of the Israel-based fintech's latest piece of financial engineering, they sold the stock off by nearly 26% over the five trading days, according to data compiled by S&P Global Market Intelligence.
In a regulatory document filed on Thursday, Pagaya said that a group of stockholders would be selling class A shares of the company. This sale involves up to nearly 677 million shares. Additionally, the company said it was floating up to 46.1 million-plus new class A shares to cover warrants that are being sold in public and private placements.
The company stressed that it will receive no monies from the stockholder sale. It wrote in its filing that lock-up agreements had expired, or will expire in mid-December, with "certain of our shareholders" it did not identify. Pagaya went public in June via a merger with its special-purpose acquisition company (SPAC).
Source Fool.com
