Why SOS Limited Stock Tanked Today
Shares of SOS Limited (NYSE: SOS) tanked today, down by 12% as of 11:30 a.m. EST, after the company announced the exercise of warrants. The corporate action will be dilutive to existing investors but allow SOS to raise more capital.
Certain investors have agreed to exercise warrants to purchase up to 23.9 million American depository shares (ADSes) at an exercise price of $4.05. The gross proceeds from the exercise are expected to be approximately $96.7 million, and SOS has agreed to give the exercising warrant holders new unregistered warrants to purchase ADSes at an exercise price of $7 per ADS. Those new warrants will be good for five years before expiration and represent an additional 23.9 million ADSes.
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Source Fool.com
