Why Nano Labs Stock Is Getting Obliterated

Nano Labs Ltd NA shares are trading lower by 55.7% to $0.86 during Thursday’s session after the company announced the pricing of a $5 million registered direct offering.

This securities purchase agreement with institutional investors involves the purchase of 4,347,825 Class A ordinary shares in a registered direct offering. Additionally, in a concurrent private placement, the company will issue warrants to purchase up to 6,521,737 ordinary shares.

The offering price for each share and accompanying warrant is $1.15, with the warrants exercisable immediately and expiring five years from the effective registration statement date, at an exercise price of $1.265 per share.

The gross proceeds are estimated to be around $5.0 million before expenses. The offering is anticipated to close around April 15, pending customary closing conditions, with Maxim Group LLC acting as the sole placement agent.

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How To Buy NA Stock

By now you're likely curious about how to participate in the market for Nano Labs – 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 Nano Labs, which is trading at $0.85 as of publishing time, $100 would buy you 117.65 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, Nano Labs has a 52-week high of $4.75 and a 52-week low of $0.85.