Flora Growth Corp (NASDAQ:FLGC) Stock Reacts Sharply Negatively After New Stock Offerings
Flora Growth Corp (NASDAQ:FLGC) fell 41% on Friday after the company announced the pricing of its $30 million public stock and warrants offering. Shares were down 35% on early trading at 42.4 per share following the announcement.
Market Stats
On Friday, FLGC stock slumped 41.20% at $2.17 with more than 12.16 million shares, compared to its average volume of 1.81 million shares. The stock has moved within a range of $2.1600 – 2.7000 after opening trading at $2.48.
New Stock Offerings
The company is offering 10 million units priced at $3 per unit. Each share unit comprises a common share and one and a half warrant that entitles the warrant holder to purchase one common share of Flora growth at $3.75 per share. The warrants are exercisable immediately, and they have a five-year expiry from the day of issuance.
The company anticipates closing the offering on November 23, 2021, subject to meeting customary closing requirements. Flora Growth has given the warrant holders a 45-day option to acquire around 15% of the total Units offered pursuant to the offering to cover overallotments at the public offering price minus underwriting discounts. Early last week, the company closed a $30 million cash and stock purchase of Vessel Brand Inc. So, investors should watch FLGC.
Traders Corner
FLGC stock is trading below the 20-Day and 50-Day Moving averages of $4.41 and $5.04 respectively. Moreover, the stock is trading below the 200-Day moving average of $4.69. The stock is down 54% in the past month.
