Rubico (RUBI) stock surged on Friday after the shipping transportation services company closed an underwritten public offering for its shares. The company sold 12,315,270 units in this offering for $0.609 each, representing net proceeds of roughly $7.5 million. The units each contained one share of RUBI stock and a warrant to purchase another share for $0.609.
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The warrants are immediately exercisable and expire one year after being issued. Rubico also noted that the warrants are subject to price resets if certain conditions are met. This would drop the exercise price to $0.4263 on the fourth day of trading and $0.3045 on the eighth day of trading.
As part of this public offering, Rubico has granted Maxim Group LLC, the representative of the underwriters in the offering, a 45-day option to acquire an additional 1,847,290 shares and/or warrants for the public offering price. Maxim Group LLC exercised this right to obtain 1,847,290 warrants.
Rubico Stock Movement Today
Rubico stock was up 47.07% in pre-market trading on Friday, following a 26.47% fall yesterday. The shares have decreased 94.57% year-to-date.
With today’s public offering news came heavy trading of RUBI stock. As of this writing, more than 89 million shares have changed hands. That’s a massive increase in trading activity, compared to the company’s three-month daily volume of about 63,000 units.
The volatility Rubico stock has experienced over the past couple of days makes sense. A public offering dilutes shares, which often results in the stock’s price dropping. Traders saw that yesterday, and now the shares have bounced back from that news. There could be additional volatility for RUBI stock in the coming days.
