Shares of Arcimoto (NASDAQ:FUV) collapsed today after the company announced that it’ll be selling 4 million shares and warrants at a combined price of $3 per share. This will allow the electric vehicle maker to raise $12 million in gross proceeds. In addition, the warrants will have a $3 strike price.
It’s worth noting that a falling share price might produce some additional risks for FUV shareholders because the underwriters might demand to buy shares at a lower price. This would mean that the company would either have to sell more shares and further dilute investors to raise $12 million or settle for less money.
FUV stock currently trades below $2.50 per share as a result of this announcement, equating to a drop of more than 50% over the past five days.
