Why Volta Stock Got Zapped Today
Volta (NASDAQ: VLTA) is an owner and operator of electric vehicle (EV) charging infrastructure. The company differentiates itself by partnering with retailers and landlords who utilize its charging stations as an advertising medium. The company went public through a business combination with a special purpose acquisition company (SPAC) in August 2021. After raising less than expected from the merger, Volta is now having to satisfy certain obligations for early investors. That is causing the stock to plummet today. As of 2:50 p.m. EDT, Volta shares were down 22% on the day.
To satisfy obligations to certain shareholders, including early private placement in public equity (PIPE) investors, Volta has registered an additional 116 million shares for these stakeholders to sell.
Source Fool.com
