Bubble Wrap maker Sealed Air surges on report of buyout talks
Investing.com -- AgEagle Aerial Systems Inc. (NYSE:UAVS) stock tumbled 17.1% Thursday after the drone and aerial imaging solutions provider announced a securities purchase agreement to sell convertible preferred stock.
The company said it has agreed to sell an initial 12,000 shares of its Series G Convertible Preferred Stock to investors, with the potential to sell up to 100,000 shares in total. The preferred stock is convertible immediately upon issuance at a conversion price of $1.23 per share, subject to adjustment.
Following the initial closing, investors may purchase up to an additional 88,000 shares of the preferred stock, pending stockholder approval for the issuance of the common shares that would result from conversion. This approval is required because the potential conversion would exceed 19.99% of AgEagle’s currently outstanding common stock.
The significant stock decline suggests investors are concerned about potential dilution from the convertible offering, which could increase the company’s outstanding share count substantially if the preferred shares are converted to common stock.
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