Edible Garden AG Inc. (NASDAQ: EDBL) is a controlled environment farming company that sells its products across the United States. It is looking to take the next big step in its business life cycle and raise finances to expand its scale of operations. As one would expect, EDBL is still struggling to navigate the highly volatile market amid the present macroeconomic environment.
EDBL Falls Amid Pricing Concerns
Edible Garden AG Inc. (EDBL) has been having a rough day in the market today, as bears gutted the stock, bringing to it a loss of over 30%, just today alone. This price plunge coincides with an offering made yesterday where the Company issued warrants to investors holding a price of $6.30 each. Just a few days earlier, EDBL was trading close to the $15 mark, so the $6.30 pricing triggered alarm bells across the markets, with many bears fearing an overvaluation. What followed was a logical market selloff that brought EDBL to nearly $8 by the pre-market traders.
Improving Prospects for Motorsport Games
EDBL is at an early stage of its operations, hence the volatility surrounding its stock during this offering is somewhat in line with expectations. Edible Garden has been selling its product to major supermarkets and smaller distributors in select locations across the United States. Its business model is one that needs no proof of action. The financing boost through the warrant issuance is one that Edible Garden actively seeks out, in order to expand its business away from present constraints. Presently, due to its small scale of operations, only two of its customers, represent almost 60% of its total revenue.
Conclusion
EDBL stock took a battering in the market today after the market turned its attention to the pricing details of the warrants issued. The company is still in an extremely early phase, and it seems determined to climb ahead.
