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 Amazon.com increased 118% in the first half of 2021, which saw its share price surge, closing at +45%.
Should You Invest in ToughBuilt Industries Shares?
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It’s a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now