Shares of hemp and herb products provider Hempacco (NASDAQ:HPCO) are continuing their wild gyrations and are down nearly 60% at the market open today already.
For context, HPCO shares had risen from $0.75 on February 8 to $4.4 yesterday. So, what gives?
The earlier price surge had come after HPCO teamed up with Snoop Dogg for the development of a product line of consumer-packaged goods. Today, though, the fortunes of HPCO shares have changed after the company announced an upsized underwritten public offering of 4.2 million shares at $1.50 apiece.
HPCO expects $6.3 million in gross proceeds from the offering and has also given underwriters a 45-day option to acquire 630,000 additional shares. The offer is anticipated to close on February 14.
Even after today’s decline, HPCO shares are still up a whopping 135.2% year-to-date.
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