Why SOS Limited Stock Plunged Today
Shares of SOS Limited (NYSE: SOS) plunged on Tuesday after the company announced a substantial stock offering. Many other cryptocurrency stocks rose for the session because Bitcoin was trading higher. However, the stock offering was too much for SOS to overcome, and it finished the day down almost 11%.
To be more specific, as an international stock, SOS Limited trades in the U.S. as American depository receipts (ADR), which not technically common shares. In the press release from the company, management said it's selling 25 million ADRs and 25 million warrants. The company is selling an ADR and warrant for $5 each, which is below where ADRs traded on the open market at the time. The warrants also have an exercise price of $5.
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Source Fool.com
