In a surprising turn of events for Akoustis Technologies Inc, the company’s stock witnessed a sharp decline in the wake of its recent announcement regarding a proposed public share offering. As of Wednesday’s closing bell, the stock stood at a respectable $0.70, only to plummet to $0.45 as Thursday’s trading session kicked off.
At the time of this publication, Akoustis Technologies Inc stock (AKTS) has witnessed a decline.
Akoustis Technologies Inc
Current Price: $0.49
Change : -0.22
Change (%): (-31.02%)
Volume: 2.4M
Source: Tomorrow Events Market Data
The revelation came through a press release from Akoustis Technologies, outlining its intention to initiate an underwritten public offering of AKTS stock. However, crucial details such as the pricing of the offering and the number of shares to be included remain conspicuously absent.
One noteworthy aspect of the announcement is Akoustis Technologies’ decision to grant the underwriter a 30-day option to acquire additional shares. In this venture, Roth Capital Partners assumes the pivotal role of the sole manager overseeing the AKTS stock offering.
The strategic move towards a public share offering inherently implies Akoustis Technologies’ desire to augment the total number of outstanding shares. While this approach may have potential benefits for the company, it simultaneously dilutes the ownership stakes of existing investors. This dilution effect is a primary driver behind the significant drop in the company’s stock value witnessed today.
Furthermore, the market reaction can be attributed to the common practice of pricing shares in public offerings below their current market value. Although the specific offering price for AKTS stock has not been disclosed, the prevailing sentiment suggests an anticipation of a pricing structure that might further contribute to the current decline.
Investors and traders keenly observe such developments, as they carry implications for the company’s financial standing and the potential impact on shareholder value. The coming days will likely see heightened scrutiny as the market awaits further details and the unveiling of Akoustis Technologies’ comprehensive strategy in navigating this complex landscape.
