Star Fashion Prices $9.6M Follow-On at $0.80, a 71% Discount to Market
STFS has more than doubled off its 52-week low of $0.8 on light trading volume (0.1× avg).
Summary
Star Fashion priced a 12 million share follow-on at $0.80 per share, raising about $9.6 million before fees. That's a 71% discount to the last close of $2.80, and the stock is likely to gap down hard at the open. The company filed the F-1 for this offering on September 17, so the pricing is the final step, but the deep discount signals weak demand and heavy dilution for a micro-cap with a market cap under $5 million. Proceeds go to online marketing services and working capital. The offering is expected to close September 28. Placement agent Kingswood Capital Partners will receive a 6.5% cash fee and 0.6% non-accountable expense allowance, with expense reimbursement capped at $100,000.
Updated with an SEC 6-K filing · What changed
Updates
· SEC 6-K — The 6-K discloses placement agent Kingswood Capital Partners will receive a 6.5% cash fee and 0.6% non-accountable expense allowance, with expense reimbursement capped at $100,000.
At the time of this announcement, STFS was trading at $2.80 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $4.1M. The 52-week trading range was $0.80 to $20.99. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.