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Investing.com -- Ramaco Resources Inc . (NASDAQ:METC) stock fell 14% after the coal and minerals company priced its public offering significantly below the previous day’s closing price.
The company announced it has priced an underwritten public offering of 10.67 million shares of Class A common stock at $18.75 per share, well below Wednesday’s closing price of $23.14. Ramaco expects to receive approximately $200 million in gross proceeds from the offering, before deducting underwriting fees and expenses.
According to the company’s statement, the offering was increased from its originally planned size. Additionally, selling stockholder Yorktown Energy Partners granted the underwriters a 30-day option to purchase up to an additional $30 million worth of shares at the same offering price.
The substantial discount in the offering price compared to the market value appears to have triggered the sharp decline in Ramaco’s share price as existing shareholders face potential dilution at the lower valuation.
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