Intel stock spikes after report of possible US government stake
Investing.com -- Surf Air Mobility Inc. (NYSE:SRFM) stock plunged 30% after the regional air mobility platform announced a registered direct offering of 10.8 million shares at $2.50 per share, representing a significant discount to its previous closing price.
The company plans to raise approximately $27 million in gross proceeds from the offering, which is expected to close around June 26, 2025. H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction.
Surf Air intends to use the net proceeds to reduce certain debt obligations and for general corporate purposes, according to the company’s statement. The offering includes the option for investors to receive pre-funded warrants in lieu of common shares.
The $2.50 per share pricing appears to have triggered the sharp selloff, as stock offerings below market price typically dilute existing shareholders’ ownership stakes. Such offerings are common methods for companies to raise capital but often result in negative market reactions when priced at a discount.
The transaction is subject to customary closing conditions, with the final details to be determined in the coming days.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.