Why Are GD Culture (GDC) Shares Trading Lower Today - GD Culture Group (NASDAQ:GDC)

GD Culture Group Limited GDC shares plunged since it shared plans to raise funds via direct stock sale.
On Tuesday, GD agreed to raise $11.55 million via a stock offering of 0.47 million shares and pre-funded warrants to purchase up to 0.93 million shares at $8.27 per share.
In a concurrent private placement, GD also agreed to issue to the same investors warrants to purchase up to 1.4 shares at an exercise price of $8.27 per share.
GD shares closed at $31.00 on Monday.
The warrants will have a 5-year term from the date of issuance.
The transactions will likely close by May 4, 2023.
Price Action: GDC shares traded lower by 76.1% at $7.40 on the last check Tuesday.