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Investing.com -- Bolt Projects Holdings Inc (NASDAQ:BOLT) stock plunged 44.6% following the announcement of a discounted share offering that will significantly dilute existing shareholders.
The company revealed it has entered into a securities purchase agreement with investors to sell 913,979 shares of common stock at $4.65 per share, a substantial discount to its previous trading price. The offering, expected to close on August 15, 2025, will raise approximately $4.25 million in gross proceeds before fees and expenses.
As part of the agreement, Bolt Projects will also offer pre-funded warrants as an alternative to shares. These warrants will be priced at $4.6499 each with a nominal exercise price of $0.0001 per warrant and no expiration date, allowing investors to convert them to common stock at virtually no additional cost.
The company stated it plans to use the net proceeds for "general corporate purposes, including working capital," without providing specific details about how the funds will be allocated.
The warrants include ownership limitation provisions preventing investors from beneficially owning more than 4.99% or 9.99% of outstanding shares after exercising their warrants.
This capital raise comes at a significant cost to existing shareholders, as reflected in today’s sharp stock decline, with investors reacting negatively to both the discounted offering price and the potential for future dilution through the warrant exercise.
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