Volcon stock slides after announcing new equity offering
MicroStockHub
Volcon Inc. (NASDAQ:VLCN) slid in early trading on Monday after the all-electric powersports company announced that it intends to offer its securities in a firm commitment underwritten public offering.
The Texas-based company intends to use the proceeds from the offering for general corporate purposes, including working capital, operating expenses and capital expenditures.
The offering is expected to close on May 24, subject to customary conditions.
Offering details: Volcon (VLCN) signed a securities purchase and exchange agreement on issue an investor approximately $5M original principal amount of nine month convertible senior notes and accompanying warrants to purchase approximately 5.5M shares of common stock at an exercise price of $1.09 per share expiring August 2027, as well as exchange senior convertible notes in principal amount of $27.2M due February 24, 2024 for two senior convertible notes due February 24, 2024 with initial conversion prices of $1.09 and the offering price. The agreement also includes exchange common stock purchase warrants to purchase 9,057,971 shares of common stock at an exercise price of $2.85 per share for warrants to purchase 17,057,971 shares of common stock with an initial exercise price of $1.09 per share.
Shares of Volcon (VLCN) plunged 31.72% in premarket trading to $0.75 to mark a new all-time low. The electric vehicle stock traded as high as $3.45 last August.
