Why Edible Garden (EDBL) Shares Are Plunging Today - Edible Garden (NASDAQ:EDBL)

Edible Garden AG Inc EDBL has priced its upsized underwritten public offering of 1.6 million units, with each unit consisting of one share and one warrant to purchase one share.
Each unit is being sold at a public offering price of $6.30 per unit. The warrants in the units will be immediately exercisable at $6.30 per share and will expire five years from the date of issuance.
The shares of common stock and accompanying warrants can only be purchased together in this offering, but will be issued separately.
Gross proceeds, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $10.2 million.
Edible Garden has also granted the underwriters an option to purchase an additional 0.2 million shares. The offering is expected to close on or about Feb. 7, 2023.
Edible Garden recently undertook a reverse stock split of its shares of common stock at a ratio of 1-for-30, effective Jan. 26, 2023.
Price Action: EDBL shares are trading lower by 42.2% at $4.83 in premarket on the last check Friday.

Edible Garden Plunges After $10.2M Equity Offering