The Agrify Corp (NASDAQ: AGFY) stock price soared 78.5% after unveiling its latest equity offering pricing, which is expected to raise approximately $8.7 million.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The cannabis extraction and cultivation solutions company priced each of the 11,884,615 shares of its common stock on offer and the accompanying warrants to purchase 26,769,230 shares of its common stock at $0.65 each.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Investors cheered the announcement, given that the new shares issued were priced at a significant premium to the stock’s closing price on Friday. The company expects the offering to close tomorrow, with Canaccord Genuity as the sole bookrunner.
Agrify will also offer pre-funded warrants to participating investors less the $0.001 per share exercise price of each, and they will be sold alongside the common warrants. The firm intends to use the proceeds of the capital raise for working capital and general corporate purposes.
Investor interest in the company remains high, as over 5.43 million shares had changed hands at the time of writing. The cannabis company has seen its shares fall over 99% this year as investor sentiment towards it turned sour.
Agrify cut its full-year revenue estimates in November to $65m-$70m from its earlier estimates of $70m-$75m, with the new range being much lower than the analysts’ consensus estimate of $72.28 million.
Several investment firms have slashed their Agrify stock price targets, with the most significant cut coming from Maxim analyst Anthony Vendetti who lowered his Agrify price target to $3 from $40 after its Q3 earnings miss and guidance cut but kept a Buy rating on the shares.
An analyst at Alliance Global Partners also downgraded his rating on Agrify to Neutral from Buy.
The cannabis company has the potential to recover next year but will need a lot to recover. A change in investor sentiment towards the industry could be a great driver for the firm.
*This is not investment advice.
Agrify stock price.
The Agrify stock price soared 78.52% to trade at $0.44, from Friday’s closing price of $0.2459.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.