Why SunCar Technology Group (SDA) Stock Is Getting Obliterated

SunCar Technology Group Inc SDA shares are trading lower by 20.6% to $9.17 Thursday morning after the company announced a $21 million follow-on offering of 2,567,238 shares at $8.18 per share.

What Else?

SunCar Technology will issue 2,567,238 Class A Ordinary Shares at $8.18 per share to institutional investors, along with common warrants allowing the purchase of up to 3,850,856 Ordinary Shares at $9.00 per share for five years.

The funds will be used for general corporate purposes, and the offering is set to close around October 30, with FT Global Capital, Inc. serving as the placement agent.

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According to data from Benzinga Pro, SDA has a 52-week high of $45.73 and a 52-week low of $3.80.