Capstone Shares Plunge After Pricing $8M Public Offering

Capstone Green Energy Corp CGRN shares plunge after pricing the public offering consisting of ~2.93 million shares of its common stock and accompanying warrants to purchase 2.93 million shares at a combined public offering price of $2.75 per share and accompanying warrant.
The warrants have an exercise price of $2.75 per share, are exercisable immediately, and will expire five years following the date of issuance.
The offering is expected to close on August 23, 2022.
The gross proceeds are expected to be ~$8 million. Capstone intends to use the net proceeds for general corporate purposes and growth initiatives, including expanding its Energy as a Service long-term rental fleet.
Price Action: CGRN shares are trading lower by 37% at $2.48 on the last check Friday.