Toughbuilt Industries (NASDAQ:TBLT) Stock Pulls Back After The Recent Rally: What Next?

NASDAQ listed company Toughbuilt Industries (NASDAQ:TBLT) witnessed its shares plummet by more than 31% in the mid-day session.

Investors responded pessimistically to the firm entering into securities purchase agreements with some of the institutional investors. This was with respect to issuance and sale of 46,029,920 shares of common stock as well as warrants to buy about 23,014,960 shares of common stock at a price of purchase $0.869 per share.

These warrants can be immediately exercisable at a price of $0.81 per share of common stock and would be expiring in 5 days from the date of issuance. Furthermore, the offering would be closed on or around July 14, subject to satisfaction of customary closing conditions.

Toughbuilt expects gross proceeds to the tune of $40 million, before deduction of placement agent fees as well as other expenses. The company currently aims to use the net proceeds from offering for working capital purposes. For the offering, H.C. Wainwright is acting as the exclusive placement agent. The company’s shares had surged by 45.75% on July 9.

Market Reaction:

As of 1:29, TBLT stock slumped 31.25% at $0.7228 with more than 76.31 million shares, compared to its average volume of 6.13 million shares. The stock had moved within a range of $0.7130 – 0.7694 after opening the trade at $0.7476. Over the past 52-week, the stock has been trading within a range of $0.5900 – 1.7800.