Greenwave Technology (NASDAQ: GWAV) stock plummeted in intraday trading Tuesday after initiating a registered direct offering.
Greenwave Technology (GWAV), a leading recycling company, has disclosed plans to sell 420,596,154 shares of GWAV common stock to select institutional and accredited investors for $0.052 per share. The company anticipates gross proceeds of $21.87 million from this stock offering.
In addition to the shares, investors will also receive warrants to acquire another 420,596,154 shares of GWAV stock, with an exercise price of 10 cents each.
While the stock offering aims to bolster the company’s financial position, it does dilute the stakes of current shareholders, contributing to a decline in the stock price on Tuesday. The offering price of $0.052 per share is notably lower than the previous close of 16 cents per share, further impacting investor sentiment.
Earlier this month, Danny Meeks, Chairman and CEO of Greenwave Technology, undertook a significant initiative to strengthen the company’s balance sheet. Meeks converted around $17.22 million of debt into company equity, comprising $7.22 million in common stock at $0.1167 per share and $10 million in Series D Preferred Stock.
Greenwave Technology (NASDAQ: GWAV) Stock Movement
On Tuesday, GWAV stock nosedived by 62.72%, settling at $0.06, marking a weekly surge of 32.36%. Trading activity saw a whopping 709,369,792 shares swapped, compared to the typical daily volume of 99.02 million.
