Why China Natural Resources (CHNR) Stock Is Nosediving

China Natural Resources Inc CHNR shares are trading lower by 42% to $2.00 Friday morning after the company arranged a registered direct placement of approximately $3.27 million worth of common shares at $2.20 per share with institutional investors.

This agreement also includes a concurrent private placement of common share warrants exercisable for up to 1,115,903 shares at $3.00 per share, with a term of 42 months. The offering is anticipated to finalize around February 21, 2024, pending customary closing conditions.

Proceeds from the placement will primarily be allocated for general working capital purposes. FT Global Capital, Inc. served as the exclusive placement agent for the deal.

See Also: Producer Inflation Outruns Expectations In January

How To Buy CHNR Stock

By now you're likely curious about how to participate in the market for China Natural Resources – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of China Natural Resources, which is trading at $3.1 as of publishing time, $100 would buy you 32.26 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, CHNR has a 52-week high of $8.85 and a 52-week low of $0.86.