Why Westport Fuel Systems Stock Dropped Today
Shares of natural gas fuel technology company Westport Fuel Systems (NASDAQ: WPRT) took a hit on Wall Street after the company announced plans for a capital raise. As of 3 p.m. EDT Wednesday, Westport stock was down by 13.2%.
Tuesday evening, Canada-based Westport announced a common share offering in the U.S. and Canada. The marketed offering aims to bring in gross proceeds of $100 million, which the company will use to support its growth. A marketed offering is one where the underwriters agree to purchase all of the shares from the issuer, but do not firmly set the price or quantity of the shares to be offered until after they market the securities to potential investors. At the company's market capitalization as of Tuesday's close, this offering could dilute shareholders by nearly 10%.
Image source: Getty Images.
Source Fool.com
