Phunware (NASDAQ: PHUN) shares took a nosedive on Wednesday following a record surge the day before.
Phunware (PHUN) witnessed a remarkable rally on Tuesday, with its shares closing 453.5% higher during regular trading hours. This surge was accompanied by an unprecedented trading volume of 1.5 billion shares, far surpassing its daily average of 30.5 million shares.
The surge in interest surrounding PHUN stock appears to be linked to former President Donald Trump’s recent victory in the Republican caucus in Iowa. Phunware has ties to the former President, and it seems this connection fueled Tuesday’s rally.
However, as the excitement surrounding this news settled, PHUN stock retraced some of its gains, plunging by over 61% to hit $0.16 on Wednesday. The trading activity was notably high, with 508,125,899 (508.12 million) shares changing hands, well above the typical daily average of 30.19 million.
As 2024 marks a presidential election year, with Trump actively running for office, investors should brace for heightened activity in PHUN stock. The connection to Trump adds an element of volatility, making the stock potentially more unpredictable until the election concludes.
On January 16, Phunware (NASDAQ: PHUN) officially agreed to sell around 87.5 million shares of its common stock (or pre-funded warrants) at $0.08 per share. This transaction will be executed per Nasdaq rules using an at-the-market approach. The shares are being offered under an effective shelf registration statement on Form S-3 (File No. 333-262461).
The closing of this offering is expected to happen on or around January 18, 2024, pending the fulfillment of standard closing conditions. The total proceeds from the sale, estimated to be around $7.0 million before accounting for the placement agent’s fees and other expenses, will provide crucial financial support for Phunware.
Phunware plans to use the net proceeds from this sale for various purposes, such as working capital and general corporate needs. In addition, the funds will play a role in expanding the company’s product initiatives, including efforts to capitalize on its patent portfolio, PhunCoin, and PhunToken.
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