Why Nano Nuclear Energy (NNE) Stock Is Diving

Nano Nuclear Energy Inc NNE shares are trading lower by 10.7% to $23.42 during Friday’s session after the company announced the pricing of an $18 million upsized offering of 900,000 shares of common stock and warrants at $20 per share.

What Happened?

NANO announced an upsized public offering of 900,000 shares of common stock and 450,000 warrants at $20.00 each, aiming to raise approximately $18 million before expenses. An additional 135,000 shares and 67,500 warrants may be purchased by the underwriter within 30 days.

The warrants, exercisable immediately at $20.00 per share for five years, will not trade on any market. Proceeds will fund the development of NANO Nuclear’s micro nuclear reactors, ZEUS and ODIN, HALEU fuel transport technology, U.S. HALEU fuel fabrication, business development and general corporate purposes. The offering is set to close around July 15.

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Is NNE A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Nano Nuclear Energy‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Nano Nuclear Energy does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 17.39%, you'll need to buy a share of Orchid Island Cap by the Jul. 31, 2024. Once done, you can expect to receive a nominal payout of $0.12 on Aug. 29, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Nano Nuclear Energy will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, NNE has a 52-week high of $37.51 and a 52-week low of $3.25.