Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of eCommerce firm 1847 Goedeker Inc (NYSE American: GOED) have plunged on Friday after the company announced the pricing of a public offering of 91.1 million units.
Each unit consists of one share of common stock and one warrant to purchase one share of common stock. Each unit is being sold to the public for $2.25.
The gross proceeds are expected to be approximately $205 million. The warrants included within the units are exercisable immediately, with an exercise price of $2.25 per share and expire five years from the date of issuance.
Goedeker said the warrants will begin trading on the NYSE American on May 28 under the ticker symbol “GOED WS”.
The company has granted the underwriter a 30-day option to purchase up to 2 million additional shares of common stock and/or up to 2 million additional warrants to cover over-allotments.
Goedeker said it intends to use the net proceeds from the offering to pay part of the cash portion for the proposed acquisition of Appliances Connection with any remaining funds used for working capital and general corporate purposes.
1847 Goedeker's stock price has fallen over 70% to $1.82 following the news. On Thursday, its share price rose to highs of $16.82 before closing at $6.07, +40%.
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