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ToughBuilt Industries (TBLT) Stock Plunges On $40m Direct Offering

Sam Boughedda trader
Updated 12 Jul 2021

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ToughBuilt Industries

ToughBuilt Industries (NASDAQ: TBLT) shares have plunged premarket on Monday after the company announced a $40 million registered direct offering.

The product design, manufacturer and distributor have entered into securities purchase agreements with institutional investors for the issuance and sale of over 46 million shares of common stock and warrants to purchase up to 23 million shares at a purchase price of $0.869 per share.

The warrants will be immediately exercisable at $0.81 per share and will expire five years from the date of issuance.

ToughBuilt said it intends to use the net proceeds from the offering for working capital purposes.

ToughBuilt's share price is down 25.5% premarket at $0.78. 

The news follows last week's announcement that ToughBuilt's gross sales through increased 118% in the first half of 2021, which saw its share price surge, closing at +45%.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.