The stock of Volcon, Inc. (VLCN) declined in the current market after the company announced its underwritten public offering. VLCN values at around $2.90, losing more than 23% from the previously closed value. At the end of the last trading session, the stock closed at around $3.78. The stock volume traded in the last trading session was around 150.78K shares.
The reason for the stock decline
Volcon, Inc. (VLCN) announced today the pricing of an underwritten public offering of 6,666,667 shares of common stock, par value $0.00001 per share, at a public price of $3.0 per share. The offering was made in connection with the company’s acquisition of Volcon, Inc. Before underwriting discounts and commissions, as well as anticipated Offering expenditures; the company anticipates total proceeds of approximately $20.0 million.
If the underwriter exercises its 45-day option to purchase up to an additional 1,000,000 shares of Common Stock, the total gross proceeds from the Offering will be approximately $23 million, according to the underwriter’s estimates. Aegis Capital Corporation is the sole book-running manager for the Offering. On February 1, 2022, the business estimates that VLCN will complete the deal will all the criterila fulfilled
Under an effective registration statement on Form S-1 (No. 333-262343) filed with the Securities and Exchange Commission or SEC on January 28, 2022, Volcon, Inc. makes the securities described above available to the public. The final prospectus will be filed with the Securities and Exchange Commission and made available on the Commission’s website.
Effect on the stock
The stock of Volcon, Inc. (VLCN) fell when the firm stated that it would be liquidating its equities. The company’s stock is declining due to this reason the investors are hesitant to invest in it.
Conclusion
Following the announcement of Volcon, Inc.’s (VLCN) underwritten public offering, the shares plummeted in the stock market. The net proceedings from the public offering, which totaled $20 million, the company will use it for working capital, general corporate expenses, administrative expenses, and sales and marketing.
