ToughBuilt Industries Shares Are Getting Obliterated Today: What's Happening?

Toughbuilt Industries Inc TBLT shares are trading lower by 30.93% to $5.51 Monday morning after the company announced a $20 million private placement priced at a premium to market under Nasdaq rules.

What Happened?

The company entered into definitive agreements with institutional investors for the issuance and sale of 4 million shares of common stock and preferred investment options to purchase up to 8 million shares of common stock at an offering price of $5.00 per share and accompanying preferred investment options, in a private placement priced at a premium to market under Nasdaq rules.

ToughBuilt Industries says the private placement is expected to close on or about July 27, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from this offering for general corporate purposes, including working capital.

The stock is otherwise trading higher by some 105% over the trailing 5 sessions amid marked interest on social media and mentions of a short squeeze.

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According to data from Benzinga Pro, ToughBuilt Industries has a 52-week high of $104.98 and a 52-week low of $1.34.