Why VCI Global Stock (VCIG) Is Getting Hammered

VCI Global Ltd VCIG shares are trading lower by 33% to $1.04 Friday morning after the company announced the pricing of a public offering, involving 2.2 million ordinary shares and corresponding Series A and Series B warrants.

The combined offering price is set at $1.25 per ordinary share and associated Series Warrants. The Series Warrants, exercisable at $1.25 per share, have different expiration periods – five years for Series A Warrants and eighteen months for Series B Warrants – following the initial exercise date.

The closing of the offering is anticipated around January 17, contingent on customary closing conditions. StockBlock Securities LLC is the exclusive placement agent for the offering.

The company expects gross proceeds of approximately $2.75 million, with the net proceeds allocated for client IPO investment, strategic acquisitions, financing initiatives, technology-related R&D and team expansion.

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According to data from Benzinga Pro, VCIG has a 52-week high of $24.20 and a 52-week low of $0.96.