Volcon Inc, the trailblazing all-electric, off-road powersports company, saw its stock tumble by a staggering 63% to a mere $0.24 on Thursday. This dramatic decline in the stock of Volcon came on the heels of the company’s announcement that it is embarking on a significant financial maneuver, aiming to raise approximately $18 million through a public offering.
At the time of this publication, Volcon Inc stock (VLCN) has witnessed a decline.
Volcon Inc
Current Price: $0.24
Change : -0.41
Change (%): (-63.60%)
Volume: 7.2M
Source: Tomorrow Events Market Data
The public offering, unveiled by Volcon Inc, comprises 42,857,142 Common Units or Pre-funded Units. Each unit consists of either one share of common stock or one pre-funded warrant (“Pre-Funded Warrant”) for the purchase of one share of common stock. Further, the offering includes 0.35 of a warrant to buy one share of common stock at an exercise price of $0.55 per share (130% of the price of each Common Unit sold) or, alternatively, through a cashless exercise option. This warrant, named the “Series A Warrants,” carries an expiration date set five years from the original issuance date. Additionally, the offering involves 0.35 of a warrant to purchase one share of common stock at an exercise price of $0.84 per share (200% of the price of each Common Unit sold), known as the “Series B Warrants.” Both Series A and Series B Warrants, collectively referred to as the “Warrants,” expire on the five-year anniversary of their original issuance date.
Investors looking to participate in the offering will pay $0.42 for each Common Unit, while each Pre-Funded Unit is priced at $0.41999, equivalent to the public offering price per Common Unit minus $0.00001. The Pre-Funded Warrants, which come with immediate exercisability, can be exercised at any time until all are exercised in full. Notably, for each Pre-Funded Unit sold, the number of Common Units in the offering will decrease on a one-for-one basis. The company has earmarked the net proceeds from the offering for general corporate purposes.
However, the completion of this offering is contingent upon customary closing conditions, and there is no guarantee as to when or if the offering will be finalized.
In an additional move, Volcon Inc. has granted Aegis Capital Corp. a 45-day option to purchase additional shares of Common Stock and/or Pre-Funded Warrants. This option represents up to 15% of the number of Common Stock and/or Pre-Funded Warrants initially sold in the offering. Aegis Capital Corp. is also entitled to additional Warrants, comprising up to 15% of the Warrants sold in the offering, exclusively to cover any over-allotments.
Taking charge as the sole book-running manager for the offering, Aegis Capital Corp. is expected to play a pivotal role in the strategic execution of this financial initiative. As Volcon Inc. navigates these turbulent waters, the market eagerly awaits further developments and the eventual outcome of this bold financial maneuver.
