MVIS share price drops more than 10% before market: why it happened
- Microvision, Inc. (NASDAQ: MVIS) stock price has fallen more than 10% before market. That’s why it happened.
Microvision, Inc. (NASDAQ: MVIS) stock price has fallen more than 10% before market. Investors are reacting negatively to MicroVision’s announcement that it has entered into a $ 140 million market share offer (ATM) with Craig-Hallum Capital Group.
Pursuant to the agreement, MicroVision may from time to time, at its discretion, offer and sell common shares with a total value of up to $ 140 million through Craig-Hallum. And MicroVision intends to use the net proceeds from the ATM (if any) for general corporate purposes, which may include working capital and capital expenditures as MicroVision pursues its strategy of improvement of shareholder value.
Pursuant to the ATM Share Sale Agreement, sales of Common Shares (if any) through Craig-Hallum will be effected through Ordinary Broker Transactions in transactions traded at or by the intermediary of a market maker other than on a stock exchange or otherwise at market prices prevailing at the time of the sale, at prices linked to such prevailing market prices, or at negotiated prices and / or any other authorized method by the law.
The common shares will be offered under MicroVision’s current registration statement filed February 16, 2021 with the Securities and Exchange Commission (SEC), which includes a base prospectus and a prospectus supplement relating to the offering.
“I am proud of the progress our company has made in advancing our automotive lidar program. We look forward to further promoting our technology to OEM and Tier 1 vendors and publicly testing our sensor with external test site partners. A strong balance sheet gives our customers and potential partners the assurance that MicroVision is a competent and trustworthy long-term supplier.
– Sumit Sharma, CEO of MicroVision
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