Superconductor Technologies Inc. (SCON) stock plunged in the pre-market hours on February 17th. Judging by stock reactions for the last few days the registered offering of SCON’s common shares was expected.
Superconductor Technologies announced late pre-market that it has entered into agreements with certain institutional investors for a registered direct placement of approximately $4.6 million of common stock at a price of $1.05 per share.
In addition, SCON will issue to the investors warrants to purchase up to 3,259,646 shares of common stock. The warrants have an exercise price of $1.35 per share, and are exercisable 6 months after issuance and terminate five years after the date of issuance.
Our quick due diligence confirmed that valuation of the company common stock should be much higher that $1.05/share from the direct offering. That’s why we entered in this trade at $.90/share and alerted SCON to our Twitter followers.
Superconductor Technologies stock traded over 4.2M shares with daily range from $.90 to $1.03.
Superconductor Technologies Inc.
460 Ward Drive,
Santa Barbara, CA 93111
Superconductor Technologies Inc. (STI), headquartered in San ta Barbara, CA, has been a world leader in High Temperature Superconducting (HTS) materials since 1987, developing more than 100 patents as well as proprietary trade secrets and manufacturing expertise. For more than a decade, STI has been providing innovative interference elimination and network enhancement solutions to the commercial wireless industry.
The company is currently leveraging its key enabling technologies, including RF filtering, HTS materials and cryogenics to develop energy efficient, cost-effective and high performance second generation (2G) HTS wire for existing and emerging power applications.
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