Gorilla Technology (GRRR) Stock Falls After $105M Offering

Shares of Gorilla Technology Group Inc GRRR are trading sharply lower Monday morning after the security and business intelligence solutions provider announced a $105 million registered direct offering.

What To Know: The offering is anchored by a $100 million investment from a single new institutional investor, with a large existing shareholder also increasing its position. Gorilla will issue 6 million ordinary shares at a price of $17.50 per share, a notable discount to its previous closing price.

Proceeds from the sale are earmarked for critical business needs, including the establishment of performance guarantees and bid bonds for future projects. Funds will also be allocated to meet requirements for project bids and to finalize previously announced acquisitions, in addition to general working capital.

The offering is anticipated to close around July 2, pending customary closing conditions. Per the company, this capital raise is positioned to strengthen Gorilla’s financial footing as it pursues new large-scale projects and expands its operations through strategic acquisitions.

Price Action: According to data from Benzinga Pro, GRRR shares are trading lower by 14.6% to $19.12 Monday morning.
GRRR has a 52-week high of $44.15 and a 52-week low of $2.09.

Read Also: Gorilla Technology Stock Surges On Agreement To Acquire Thai AI Firms

How To Buy GRRR Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Gorilla Tech’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.