: ShiftPixy’s stock plunges to lead premarket losers after equity offering values stock at a deep discount
Shares of ShiftPixy Inc. PIXY plunged 34.3% to pace all premarket losers Wednesday, after the workforce management software company’s public equity offering valued the stock at a deep discount. The company raised $3.1 million as it sold 2.07 million equity units at $1.50 each, with each unit consisting of 2.07 million common shares and a warrant to buy one common share at a exercise price of $1.50. The exercise price was 40% below Tuesday’s closing price of $2.39. The warrants are immediately exercisable, but expire in five years. ShiftPixy said it plans to use the proceeds from the offering for general corporate purposes. The stock has plummeted 88.6% year to date through Tuesday, while the S&P 500 has gained 15.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.