Zinger Key Points
- Redwire stock are down nearly 19% after announcing a $260 million public offering of common shares, raising dilution concerns.
- The proceeds will be used to fund growth, repurchase preferred stock, and repay debt from a past acquisition.
- Live on Wednesday: Historic Summer Setup: 3 "Power Patterns" Triggering in the next 75 Days. Get The Details Now
Redwire Corporation (NYSE: RDW shares are trading higher Tuesday after the company announced the pricing of a major public stock offering.
What To Know: The offering includes 15,525,000 shares priced at $16.75 each, bringing in approximately $260 million in gross proceeds.
This offering represents a significant move by Redwire to raise capital but it also introduces concerns about dilution, which likely contributed to the sharp drop in share price.
Redwire stated that the proceeds will be used for a combination of purposes, including strengthening its balance sheet, reducing dilution by repurchasing some of its outstanding convertible preferred stock and repaying a seller note connected to its acquisition of Edge Autonomy.
RDW Price Action: Redwire corporation shares were down 20.4% at $16.37 at the time of writing, according to Benzinga Pro.
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