Here's Why Future FinTech Group Stock Came Crashing Down Today
Shares of Future FinTech Group (NASDAQ: FTFT) came crashing down on Friday as the company announced it's completed its latest direct stock offering. This dilutes shareholder value, which is why the stock is down. As of 2:15 p.m. EST, the stock was down just 7%, but it had traded 15% lower earlier in the day.
Future FinTech announced a registered direct offering on Monday after the market closed. The offering allowed institutional investors to buy 3 million shares of its common stock at just $5 per share. Through this, the company raised $15 million, which on one hand is good. But the stock had traded as high as $7.11 per share the day of the announcement. So institutional investors got a big discount compared with retail investors.
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Source Fool.com
