Why Unusual Machines Stock Just Crashed
Unusual Machines (NYSEMKT: UMAC) stock tumbled 15.6% through 11:55 a.m. ET Friday after announcing (last night) that it planned to issue and sell new shares to raise cash to "expand its U.S. drone parts inventory and for working capital and general corporate purposes."
(Translation: Unusual Machines isn't making enough money selling drones and drone components, so it must sell shares instead.)
This morning, the other shoe dropped. Unusual Machines, which has a market capitalization of only $723 million, will sell $150 million worth of new shares. It will also be selling them for $17 each, versus the company's closing share price last night of $18.60.
Source Fool.com
