Enovix Stock Is Falling After Hours: What's Going On?

Enovix Corp ENVX shares are trading lower in extended trading Monday after the company announced a proposed $150 million offering.

The Details: Enovix said it intends to offer $150 million of convertible senior notes due 2028 in a private placement to institutional buyers. The company also intends to offer the purchasers up to an additional $22.5 million in convertible notes. 

The offering is subject to market and other conditions. There is no assurance if or when the offering will be completed or to the actual size of the offering.

Enovix plans to use some of the proceeds to pay the cost of capped call transactions and the rest of the proceeds to build out a second battery cell manufacturing facility and fund the acquisition of production lines of its second gen manufacturing equipment.

Enovix is set to report first-quarter results on April 26. The company is expected to turn in a quarterly loss of 21 cents per share. Enovix shares are pretty heavily shorted with nearly 20% of the float currently sold short, according to Benzinga Pro.

See Also: Why Vaxcyte Stock Is Sliding After Hours

ENVX Price Action: Enovix has a 52-week high of $26.28 and a 52-week low of $6.49.

The stock was down 7.3% at $12.58 at the time of publication, according to Benzinga Pro.