Why AppHarvest Shares Are Nosediving Friday

AppHarvest, Inc. APPH shares are trading lower by 26.52% to 97 cents Friday morning after the company announced pricing of a $40-million underwritten public offering of common stock.

What Else? The underwritten public offering of 40,000,000 shares of the company's common stock will be at a price to the public of $1 per share.

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Additionally, AppHarvest has granted to the underwriters a 30-day option to purchase up to 6 million additional shares of common stock at the public offering price, less underwriting discounts and commissions.

AppHarvest says the offering is expected to close on or about Feb. 14, subject to customary closing conditions. AppHarvest expects to use the net proceeds of the offering for working capital and general corporate purposes.

According to data from Benzinga Pro, APPH has a 52-week high of $7.05 and a 52-week low of $0.47.