Amid a collapse in the crypto space and under investigations over its ICO, Overstock’s share price is tumbling after-hours – near 6-month lows – after announcing a new offering of 4 million shares.
As of March 12th, Overstock had 29.5 million shares outstanding, so this is a significant dilution.
Full Statement:
Overstock.com, Inc. today announced that it intends to offer 4,000,000 shares of its common stock in an underwritten public offering.
Overstock also expects to grant to the underwriters a 30-day option to purchase up to 600,000 additional shares of its common stock in the offering. All of the shares will be offered and sold by Overstock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
Guggenheim Securities, LLC is acting as sole book-running manager for the offering. D.A. Davidson & Co. is acting as co-manager.
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