Why QuantumScape Was Stuck in the Slow Lane Today
The charge was weak with QuantumScape (NYSE: QS) stock on the first trading day of the week. Shares of the next-generation electric vehicle (EV) battery developer were down by almost 6% in mid-afternoon trading on Monday, following the company's announcement of a new capital-raising effort.
On Friday after market hours, QuantumScape filed a prospectus for up to $1 billion in financing. The company listed several types of securities it might issue to raise these funds, including common and preferred stock, warrants, and debt instruments. Some of these might be combined into so-called "units" for investors.
In fairly typical language for such disclosures, QuantumScape said vaguely it aims to utilize the raised funds "for working capital and other general purposes." The only other details the company provided is that these may include acquisitions and/or licensing of outside businesses and products; it stressed it currently has no commitments for such activities.
Source Fool.com
