Dogness Corporation (NASDAQ:DOGZ) Stock Sees Huge Selling Pressure: Now What?
Dogness (International) Corporation (NASDAQ:DOGZ) dropped 25% after the company announced the signing of a share purchase agreement with some accredited institutional investors to offer around $3.96 million worth of its Class A Common shares in a registered direct offering at $1.82 per share.
The pet products developer and producer plan to issue 2,178,120 shares of its Class A common stock to institutional investors. Dogness expects gross proceeds of around $3.96 from the sale of the shares before subtracting projected offering expenses that the company will pay and agent placement fees.
The company intends to use net proceeds from the securities sale for general corporate capital purposes. Dogness anticipates closing the placement on or around July 19, 2021. However, the offering will be subject to customary closing conditions. The company is offering the securities through a prospectus as per the company’s shelf Registration Statement already filed with the SEC, which declared it effective. So in the coming months, DOGZ is a stock to watch.
Market Reaction:
On Thursday, DOGZ stock slumped 25% at $1.77 with more than 2.22 million shares, compared to its average volume of 819k shares. The stock had moved within a range of $1.7100 – 1.9100 after opening the trade at $1.90. Over the past 52-week, the stock has been trading within a range of $1.0300 – 4.8500.
