Why Shares of Horizon Technology Finance Corp Are Falling
Shares of the specialty financing company Horizon Technology Finance Corp (NASDAQ: HRZN) traded nearly 11% lower as of 1:28 p.m. ET after the company announced the pricing of a public offering of common stock.
Horizon Technology plans to issue 2.5 million shares of common stock at $14.35 per share, raising gross proceeds of nearly $35.9 million. Underwriters will also have the option to purchase an additional 375,000 shares of common stock over the next 30 days when the offering closes on March 14.
Horizon plans to use proceeds from the offering to repay outstanding debt under its revolving credit facility. Then Horizon will reborrow funds from that facility to use for general corporate purposes and pay for operating expenses and other cash obligations.
Source Fool.com
