Nano Nuclear Stock Melts After Announcing $60M Private Placement: Retail Questions Second Fund-Raise In A Month
Synopsis
Nano Nuclear Energy will issue an aggregate of 2.5 million shares of common stock and five-year warrants to purchase an aggregate of up to an additional 2.5 million shares.
Shares of micro-reactor technology company Nano Nuclear Energy Inc. ($NNE) dropped nearly 18% on Monday following the announcement of a $60 million private placement of securities with three accredited institutional investors, which comes just a month after the company raised $41.4 million through a share sale.
The company said on Monday that the proceeds from the private placement significantly augments its cash on hand to over $120 million.
“With this cash on hand, NANO Nuclear will be able to more readily advance its cutting-edge micro-reactors, auxiliary businesses, seek complimentary acquisitions and drive growth towards initial revenue generation,” the firm said in a statement.
Nano Nuclear Energy will issue an aggregate of 2.5 million shares of common stock and five-year warrants to purchase an aggregate of up to an additional 2.5 million shares. Investors will pay a purchase price of $24 for each share and associated warrant, the company said. The warrants are exercisable for $26 per share.
Following the announcement, retail sentiment on Stocktwits continued to trend in the ‘neutral’ territory (46/100), accompanied by high retail chatter.
Interestingly, many retail investors on Stocktwits questioned the latest fund-raising decision.
Last week, investors had a reason to cheer after the company announced that former Chief Financial Officer of the U.S. Department of Energy (DOE) and Acting Director of DOE’s Advanced Research Projects Agency-Energy (APRA-E), John G. Vonglis, transitioned to an active corporate role within the firm as its Executive Director of Global Government Affairs.
Despite Monday’s slide, Nano Nuclear Energy shares are still up 433% on a year-to-date basis.
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