Nogin Stock Is Tanking Today: What's Going On?

Shares of low-float Nogin Inc NOGN are trading lower. The company announced a $22 million public offering on Tuesday.

What Happened: Nogin announced an offering of 7,333,334 shares of common stock and 7,333,334 common warrants to purchase common stock at a combined price of $3 per share. Aggregate gross proceeds are expected to total approximately $22 million.

Members of the company's management team and board are participating in the offering, which is expected to close on April 6. 

Nogin intends to use the net proceeds to repurchase promissory notes from holders of its convertible notes, as well as for general corporate purposes including working capital and capital expenditures.

The offering comes a day after NOGN shares soared, closing Monday up 139.8% at $6.51 before pulling back in extended trading. The move appeared to be a result of increased retail attention driven by the low-float nature of the stock. Nogin has a total float of about 824,000, according to Benzinga Pro.

Nogin's average session volume is approximately 192,000. Tuesday's trading volume has already exceeded 1.88 million in premarket trading.

See Also: US Stocks Set To Open Higher Today On Strong Momentum: Analyst Says Next Fed Rate Decision Could Be 'Near-Tossup'

NOGN Price Action: Nogin shares were down 60.2% at $2.59 at time of publication, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.