Why Is Greenwave Technology Solutions (GWAV) Stock Down 60% Today?
GWAV stock is down on a stock offerin.
Greenwave Technology Solutions (NASDAQ:GWAV) stock is falling on Tuesday after the metal recycling company announced an offering of its shares.
Greenwave Technology Solutions is selling 420,596,154 shares of GWAV stock to certain institutional and accredited investors for $0.052 each. The company is expecting gross proceeds of $21.87 million from this stock offering.
The recycling company notes that these shares will also come with warrants to acquire another 420,596,154 of GWAV stock. The shares have an exercise price of 10 cents each.
What This Means for GWAV Stock
The stock offering dilutes current shareholders’ stakes in the company, which is one reason the stock is falling today. It’s also priced below its previous close of 16 cents per share, which is another reason the stock is down today.
On top of this, traders will note that GWAV stock is facing delisting. The company is trying to adjust its share price to avoid this. It’s unclear what this means for the future of Greenwave Technology Solutions’ shares.
GWAV stock is down 60.4% as of Tuesday morning and is down 73.7% year-to-date when markets closed yesterday.
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