Farmmi Prices $3.0M Offering at Deep $0.25 Discount, Further Diluting Shares
FAMI is trading near its 52-week low of $0.9 (57% below the low) on elevated volume (13× avg).
Summary
Farmmi has priced a $3.0 million underwritten public offering, selling 12 million shares and/or pre-funded warrants at $0.25 per share. This pricing represents a significant discount to the current market price of $0.383 and is even lower than the $0.35 per share from a $5.8 million direct offering on June 17th. This latest capital raise follows an announcement of intent on June 27th and a preliminary prospectus filing today, and comes after shareholders approved a reverse stock split in May. The repeated dilutive offerings at progressively lower prices indicate ongoing financial distress and a pressing need for working capital.
At the time of this announcement, FAMI was trading at $0.38 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $37.1M. The 52-week trading range was $0.90 to $2.17. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: PR Newswire.