ToughBuilt Industries (NASDAQ:TBLT) Stock Takes a Severe Hit: Should You Worry?
ToughBuilt Industries (NASDAQ:TBLT) dropped 32% after announcing a $40 million at-the-market registered direct offering. The company entered into share acquisition agreements with some institutional investors to issue and sell around 46 million of its common shares and warrants to acquire around 23 million common shares at $0.869 per share and accompanying warrant.
These are exercisable immediately at $0.81 per common share and have an expiry of five years from the issuance date. The company anticipates closing the offering on or around July 14, 2021, subject to fulfilling standard closing conditions.
The company expects gross proceeds to be around $40 million before subtracting agent placement fees and offering expenses. ToughBuilt will use net proceeds from the direct offering for corporate capital purposes. The news comes at the back of last week’s confirmation that the company’s gross sales via Amazon.com had grown 118% during 1H 2021, leading to TBLT surging 45%. So, in the coming days, TBLT is a stock worth watching.
Market Reaction:
On Monday, TBLT stock plunged 33% at $0.7050 with more than 95.34 million shares, compared to its average volume of 6.19 million shares. The stock had moved within a range of $ 0.6989 – 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.
