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Investing.com -- Sadot Group Inc (NASDAQ:SDOT) stock plunged 30% following the announcement of a public offering priced significantly below market value.
The emerging Agri-Foods company revealed Wednesday it has priced a best efforts public offering of 2.5 million shares at $1.00 per share, aiming to raise $2.5 million in gross proceeds before deducting placement agent fees and other expenses. The offering, with ThinkEquity acting as sole placement agent, is expected to close on July 25, 2025.
Sadot plans to use the net proceeds primarily for general working capital, corporate purposes, and debt repayment. The securities will be offered under a shelf registration statement on Form S-3 filed with the SEC on August 29, 2024, which became effective on September 19, 2024.
The significant stock drop reflects investor concerns about the dilutive effect of the new share issuance and the pricing level, which suggests challenging capital-raising conditions for the company. The $1.00 per share price represents a substantial discount to the stock’s previous trading levels, triggering the sharp selloff.
The offering comes as Sadot Group continues its efforts to establish itself in the global Agri-Foods sector, though the need for additional capital and the terms of this financing have clearly dampened market sentiment toward the stock.
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