According to a press release from Akoustis Technologies, the company intends to sell shares of AKTS stock through an underwritten public offering. However, it hasn’t priced the offering or said how many shares will be included in it.
What we do know is that it intends to grant the underwriter of the offering a 30-day option to acquire additional shares. Roth Capital Partners is serving as the sole manager for the AKTS stock offering.
What This Means for AKTS Stock
A public offering means that Akoustis Technologies intends to increase the total number of its outstanding shares. Doing so also dilutes the stakes of current investors in the company. This is one reason why the stock is falling today.
In addition to that, public offerings are also typically priced below the stock’s current value. While the price of AKTS stock in the offering hasn’t been revealed yet, this will likely be the case. That’s another reason that traders are seeing the stock slide lower today.
AKTS stock is down 33.3% as of Thursday morning with some 163,000 shares traded. Its daily average trading volume is about 678,000 shares.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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