Why Actelis Networks (ASNS) Stock Is Down 37%

Actelis Networks shares are trading lower by 39% during Thursday's session. The company announced an agreement for the immediate exercise of certain outstanding warrants.

Actelis Networks Inc ASNS shares are trading lower by 37% to $2.34 during Thursday’s session after the company announced an agreement for the immediate exercise of certain outstanding warrants for gross proceeds of $3 million.

What Happened?

Actelis announced a definitive agreement for the immediate exercise of certain outstanding warrants to purchase up to 999,670 shares of common stock at $2.75 per share, initially issued in May and September 2023.

This exercise is expected to generate approximately $3 million in gross proceeds, before fees and expenses. H.C. Wainwright & Co. is the exclusive placement agent for the offering.

In return for the immediate cash exercise and an additional $0.125 per new unregistered warrant, Actelis will issue new Series A-1 and Series A-2 unregistered warrants, each allowing the purchase of up to 999,670 shares at $2.00 per share. The Series A-1 warrants have a term of five and a half years, and the Series A-2 warrants have a term of 24 months.

The offering is set to close around June 6, 2024, pending customary conditions, with proceeds intended for general corporate purposes.

See Also: EV Maker Nio’s Q1 Deliveries Fall 40% From Q4, Stock Slides

Should I Sell My ASNS Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Actelis Networks have lost 21.0% year to date. This compares to the average annual return of -46.28%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Actelis Networks stock currently has an RSI of 98.22, indicating overbought conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

ASNS has a 52-week high of $4.60 and a 52-week low of $0.36.