Why Edible Garden Stock Is Down Nearly 50%

Edible Garden AG Inc EDBL shares are trading lower by 46% to $2.32 during Wednesday’s session after the company announced the pricing of a $6 million public offering.

What Happened?

Edible Garden announced the pricing of a public offering involving 2.655 million shares of common stock (or pre-funded warrants), Class A warrants, and Class B warrants, at $2.26 per share (or $2.25 per pre-funded warrant) and accompanying warrants.

The exercise price for the warrants is $2.26 per share. Class A warrants will expire in five years, and Class B warrants will expire in eighteen months.

The offering is expected to close around May 23, with anticipated gross proceeds of approximately $6.0 million, before fees and expenses. Maxim Group LLC is the sole placement agent for the offering.

See Also: Target’s Q1 Earnings: Falling Revenues and Comp Sales Weigh On Retailer, But Inventories Fall By 80%

Should I Sell My EDBL Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Edible Garden have decreased by 92.9% in the past year. An investor who bought shares of Edible Garden AG at the beginning of the year would take a loss of $7.54 per share if they sold it today. The stock has fallen 66.19% over the past month, meaning an investor who bought shares on Apr. 1 would see a capital loss of $4.21.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Edible Garden AG stock currently has an RSI of 50.33, indicating neutral conditions.

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EDBL has a 52-week high of $89.60 and a 52-week low of $1.82.