WF Holding Limited (NASDAQ: WFF) shares fell about 10% to $0.10 in Monday afternoon trading, briefly touching a new 52-week low of $0.06. The decline extended a sharp reversal from last week’s rally, which saw the stock reach an intraday peak of $50.60 on October 12.
No new company-specific development had been confirmed as the cause of Monday’s decline by 4:00 p.m. ET.
Trading volume reached approximately 187.55 million shares during the afternoon session, compared with the stock’s 90-day average daily volume of 13.78 million shares, according to Yahoo Finance. That put trading activity at roughly 13.6 times the average.
WF Holding Shares Extend Steep Reversal From Last Week’s Rally
The latest decline followed a two-session surge that began on October 9, when WF Holding shares jumped nearly 500% to close at $12.29, up from $2.05 in the previous session.
The rally continued into October 12, with the stock closing at $17.28. However, the trend reversed the next day as shares plunged 87.73% to $2.12 on October 13. The decline continued through the week, with the stock closing at approximately $0.11 on Friday.
By Monday afternoon, WF Holding shares were trading about 99.4% below their October 12 closing price, putting the stock on course for a fifth consecutive declining session.
The initial selloff preceded the company’s October 14 announcement of an $18 million registered direct offering, which closed the following day.
Under the agreement, WF Holding offered 12 million units, each consisting of an ordinary share or a pre-funded warrant in its place, plus one accompanying warrant. The purchase price was $1.50 per unit, or $1.499 for a unit containing a pre-funded warrant. Each accompanying warrant allows its holder to acquire up to nine ordinary shares without an additional cash payment.
Any warrants still outstanding on October 14, 2027, will automatically undergo cashless exercise under their terms, subject to beneficial-ownership limits of 4.99% or, if elected, 9.99%.
Investors also have the right to purchase up to another 12 million units on the same terms within 30 calendar days after the initial closing, potentially providing up to $18 million in additional gross proceeds.
If investors purchase the full additional allocation, the accompanying warrants could result in issuing another 108 million ordinary shares through the zero-price exercise provision. That would bring the offering’s combined potential warrant-related share issuance to 216 million, contingent on the additional purchases and applicable warrant exercises.
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