Why American Virtual Cloud Technologies Shares Are Getting Hammered Today

American Virtual Cloud Technologies Inc AVCT shares are trading lower by 46.26% to $0.25 Thursday morning after the company announced an equity distribution agreement to offer and sell up to $14.7 million shares of common stock.

American Virtual Cloud Technologies intends to use the net proceeds the company receives from this offering for general corporate purposes, which may include repayment of debt. The company is obligated to use a portion of the proceeds to pay certain obligations to the holders of the Preferred Stock and the Note.

See Also: Here's Why MongoDB Stock Is Plunging Today

According to data from Benzinga Pro, American Virtual Cloud Technologies has a 52-week high of $4.97 and a 52-week low of $0.13.

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