Why Are Paltalk Shares Plunging Friday Premarket?

October 15, 2021 4:25 AM | 1 min read |

Communications software innovator Paltalk Inc PALT has priced 1.35 million shares at $7.5 per share in a secondary equity offering.
The offer price implies a 14% discount to the October 13 closing price of $8.72. The estimated gross proceeds Paltalk would raise is $10.125 million.
The underwriters have a 45-day option to purchase additional shares up to 0.2 million shares.
Paltalk aims to utilize the offering proceeds to fund development costs related to new and existing applications, advertising and marketing initiatives to further grow its applications and services, acquisitions of, or investments in, businesses or technologies that complement the business, and working capital and general corporate purposes.
Price Action: PALT shares traded lower by 9.69% at $8.11 premarket on the last check Friday.