Why SuperCom (SPCB) Shares Are Nosediving

SuperCom Ltd. Ordinary Shares SPCB shares are trading lower by 29.4% to $0.25 during Thursday’s session after the company announced it entered into an agreement with an institutional investor for a registered direct offering of approximately $2.9 million worth of its ordinary shares.

The deal also includes warrants to purchase ordinary shares in a private placement. The purchase price for one ordinary share and a warrant is set at $0.36. The agreement involves the sale of 8,116,155 ordinary shares (or pre-funded warrants) and issuance of warrants to purchase the same number of shares.

The warrants, with an exercise price of $0.38 per share, will expire five years from the date of issuance and are immediately exercisable.

Maxim Group LLC is facilitating the offering as the sole placement agent. The closing of the offering is anticipated around April 19, subject to customary closing conditions.

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How To Buy SPCB Stock

By now you're likely curious about how to participate in the market for SuperCom – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of SuperCom, which is trading at $0.3 as of publishing time, $100 would buy you 333.33 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, SPCB has a 52-week high of $1.54 and a 52-week low of $0.15.