In a press release, the company said the registered direct offering would close “on or about” January 16 and generate $5.4 million in proceeds.
Investors took the news as an inauspicious sign for the beleaguered company, sending shares down 15% on double their average trading volume, their biggest single-day decline in nearly a month. The stock price for months has been a bit more than a penny, meaning a potentially devastating de-listing by the Nasdaq (a common occurrence for stocks trading under $1 a share) may be in the offing.
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Each “common unit” in the direct offering will cost $0.0163, the company said. The units include warrants to buy shares beginning six months after the date of the closing and lasting for either one or five years depending on the warrant.
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