Orsted considers €5 billion rights offering to strengthen finances - Bloomberg
Investing.com -- Webull Corporation (NASDAQ:BULL) stock fell 9% after the online investment platform owner announced it had secured a standby equity purchase agreement with Yorkville Advisors.
The agreement provides Webull with the option to issue up to $1 billion in Class A ordinary shares to Yorkville over a three-year period, at the company’s discretion. Under the terms, Yorkville will purchase shares at a 2.5% discount to the market price during each one-day pricing period selected by Webull.
The financing arrangement was announced Thursday after market close. Webull indicated it plans to use the agreement strategically to raise capital when market conditions and business opportunities warrant such actions.
Anthony Denier, Group President and U.S. CEO of Webull, stated that the agreement positions the company to pursue growth opportunities including "product expansion, new asset classes, and geographic expansion." He also highlighted that access to capital would be "critical to our ability to innovate and compete on the cutting edge" as the company considers next-generation technologies like stable coins and real-world asset tokenization.
The negative market reaction suggests investors may have concerns about potential dilution of existing shares should Webull choose to utilize the equity facility.
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