Envoy Medical (COCH) stock plummeted on Wednesday after the hearing health company announced a $16 million registered direct offering. The company has agreed to sell 3,007,524 shares of COCH stock for $1.33 each, matching its at-the-market price. To go along with that, it will issue and sell unregistered warrants for up to 9,022,572 shares of COCH. These warrants will have an exercise price of $1.33 and will expire in two years.
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Envoy Medical noted that it expects gross proceeds of $4 million from the stock offering. If the warrants are exercised in full, the company would gain another $12 million in gross proceeds, resulting in a total of $16 million for this registered direct offering.
Envoy Medical already has plans for the money it will gain from this registered direct offering. The company intends to use the funds for working capital and other general corporate purposes.
Envoy Medical Stock Movement Today
Envoy Medical stock was down 36.48% in pre-market trading on Wednesday, following a 97.07% rally yesterday. The shares have gained 11.19% year-to-date but were still down 44.21% over the past 12 months.
Today’s movement came with heavy trading of COCH stock. As of this writing, more than 3 million shares have changed hands, compared to a three-month daily average of about 230,000 units. However, today’s trading volume is below the roughly 146 million shares that traded yesterday.
Envoy Medical stock being down today makes sense. Not only is the company coming off of a rally, but the stock offering increases its total outstanding shares. This dilutes the shares of current investors, which often has a negative effect on a company’s stock price.
Is Envoy Medical Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Envoy Medical stock is Moderate Buy, based on two Buy ratings over the past three months. With that comes an average COCH stock price target of $5.50, representing a potential 245.91% upside for the shares.
