What's Going On With U.S. Gold Stock Today?

U.S. Gold (NASDAQ:USAU) shares are trading lower on Wednesday after the company announced a $5 million registered direct offering.

U.S. Gold has entered into a definitive agreement with an institutional investor for the purchase and sale of 870,000 shares of common stock at a price of $5.75 per share, along with warrants to purchase 870,000 shares of common stock at an exercise price of $6.16 per share.

The transaction is part of a registered direct offering and will result in total gross proceeds of approximately $5 million, excluding fees and other estimated expenses. A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.

As part of its latest offering, the company has agreed to amend certain existing warrants. These warrants currently allow for the purchase of up to 625,000 shares at an exercise price of $8.60 per share and a termination date of September 18, 2027. Following the amendment, the warrants will have a reduced exercise price of $6.16 per share and a new termination date set for five and a half years after the closing of the offering.

U.S. Gold is a publicly traded, U.S. focused gold and copper exploration and development company.

USAU Price Action: U.S. Gold has a 52-week high of $7.48 and a 52-week low of $3.5.

U.S. Gold shares are down 26.8% at $5.89 at the time of writing, according to Benzinga Pro.