Shares of NANO Nuclear Energy Inc (NNE) plummeted 14.14% in pre-market trading on Monday, following the company's announcement of a $60 million private placement of common stock.
NANO Nuclear Energy executed a definitive securities purchase agreement with three institutional investors to issue 2.5 million new shares at $24.00 per share. The private placement will result in significant equity dilution for existing shareholders.
While the $60 million in proceeds will bolster NANO's balance sheet and fund growth initiatives, investors are concerned about the dilutive impact on their holdings. The sharp pre-market sell-off reflects these dilution fears, as the company moves forward with its capital raising plans.
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