The stock of Siyata Mobile Inc. (SYTA) plunged in the pre-market after the company announced its pricing for the $20 million underwritten public offering. The stock of SYTA was valued at $1.85 in the pre-market losing more than 43% from the previously closed value. At the end of the last trading session, the stock of SYTA closed at $3.23. The volume of the stock traded in the last trading session was around 8.34 million shares.
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Reason for the SYTA stock decline
The stock of Siyata Mobile Inc. (SYTA) significantly lost its value after the company announced that they have raised $20 million in a press release. Siyata Mobile Inc. (SYTA) announced their pricing for the $20 million worth of 8,695,652 common stock in its underwritten public offering. Each common share will be sold together with one combined warrant. The price of each share will be $2.30. The common warrants will expire in five years from the date of issuance and the combined effective price is $2.30. The offering will be closed on 11th January 2022.
Siyata Mobile Inc. (SYTA) has granted a 45-day option to the underwriters to purchase up to an additional 1.3 million common stock shares or/warrants at the public offering price exclusive of discounts and commissions. The total amount raised from the offering will be $20 million exclusives of the expenses like underwriters’ discounts, commissions, and other expenses. The amount raised will be used to carry out different business operations like corporate expenses, sales and marketing, working capital, research and development, and growth strategies. Some of the proceedings will be used to repay a part of its outstanding senior secured convertible promissory note.
Effect on the stock
As soon as the news hit the market, the stock of Siyata Mobile Inc. (SYTA) lost its value significantly. Investors might take this advantage to invest in it because the dip will temporary and the stock will regain its value in some time.
Conclusion
Siyata Mobile Inc. (SYTA) is declining but at the same time, it could be an opportunity for the inventors to invest in it and take advantage in the long run. Siyata Mobile is looking forward to spending the money on the business operations that will ultimately benefit the profitability of the company.
