What's fascinating this is S of Nano Nu Energy (NNE -9.
However, 82%), one of a handful of start-up companies aiming to commercialize small modular nu reactors, announced late Friday it intends to raise up to $620 million to further its nu endeavors.
As of 11:11 a. ET, investors have sold off the stock by 8%. Image source: Getty Images. What is Nano Nu up to.
Nano Nu says the $620 million will take the form of common and preferred stock issuances, purchase contracts, warrants, subscription rights, depositary s, debt securities, and/or units.
Additionally, Additionally, The cash may be raised "from time to time in one or more offerings.
" But most of the cash may be raised pretty quickly, through a $400 million at-the-market stock selling gram managed by three investment banks, that will see Nano Nu create and sell s at whatever price it can get.
Conversely, Is Nano Nu stock a buy (something worth watching). Nano Nu stock tumbled on the news.
It cost a bit under $42 per last week -- implying $400 million could be raised pretty easily by selling fewer than 10 million new s.
5 million s outstanding at last report, that would bably grow the count to 51 million, and dilute existing holders by 23%.
On the other hand, Now that the stock price is falling, Nano might have to sell 1 million more s to get its full $400 million -- and the stock dilution amount could rise to 25% (this bears monitoring), given the current landscape.
It would be hard to call that good news, amid market uncertainty. But it's not necessarily bad news for investors, either. Nano Nu's only burning $16 million a year right now.
At that rate, $400 million in new cash could fund this company's re and development (R&D) work for a couple of decades.
On the other hand, Net-net, I'd call this a positive for a very speculative stock, given current economic conditions.