Sealsq Corp's stock is experiencing a significant decline following the announcement of a public offering of 7.69 million shares priced at $1.30 each. This offering, which is expected to raise $10 million in gross proceeds, is being conducted under a securities purchase agreement with several institutional investors. The company plans to use the funds to advance its post-quantum semiconductor technology and ASIC capabilities in the United States, as well as to support working capital and general corporate purposes. The offering is set to close on December 16, 2024, subject to customary closing conditions.
The pricing of the shares at $1.30, which is below the previous closing price, has likely contributed to the downward pressure on Sealsq's stock. Investors often react negatively to such offerings as they can dilute existing share value. The company, which focuses on semiconductors and post-quantum technology, aims to strengthen its position in the market through this capital raise, but the immediate market reaction has been unfavorable.
Sealsq (LAES) shares are down 12.43% to $1.62 as of 7:40 am on December 13th, from its previous close of $1.85 on December 12th.