Why Crown Electrokinetics (CRKN) Shares Are Falling

Crown Electrokinetics Corp. CRKN shares are trading lower by 17% to $0.08 during Wednesday's session after the company announced an offering of 300 million shares of its common stock from time to time, by Keystone Capital Partners.

The company itself is not selling any securities through this prospectus and will not receive any proceeds from the resale of shares by Keystone Capital Partners. However, under the purchase agreement, the company may sell up to $50 million worth of common stock to Keystone Capital Partners.

So far, $13,672,316 worth of common stock has been sold, and the company may still sell up to an additional $36,327,684 worth of shares, subject to the conditions outlined in the agreement and the effectiveness of the registration statement.

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Should I Sell My CRKN Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Crown ElectroKinetics have decreased by 99.04% in the past year. An investor who bought shares of Crown ElectroKinetics at the beginning of the year would take a loss of $0.07 per share if they sold it today. The stock has risen 84.94% over the past month, meaning an investor who bought shares on May. 1 would see a capital gain of $0.04.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Crown ElectroKinetics stock currently has an RSI of 43.8, indicating neutral conditions.

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CRKN has a 52-week high of $11.68 and a 52-week low of $0.04.