FORM Holdings Corp. (NASDAQ:FH)
Shares of FORM Holdings Corp. (NASDAQ:FH) traded lower Wednesday after the company announced the pricing of a public offering of its common stock. The stock was down by 15.44% to end the day at $1.15 a share.
FORM Holdings Corp. (NASDAQ:FH) sentiments among investors continues to sour with the stock trading in a strong downtrend. The stock threatens to plunge below the $1 a share mark as it continues to trade on the lower end of $1.11-$1.18 trading range.
FORM Holdings Corp. (NASDAQ:FH) acquires, develops, and monetizes intellectual property all over the world. The company operates in four divisions including XpresSpa, Group Mobile Fli Charge, and Intellectual Property. In addition to spa service, the company also offers travel products such as neck pillows and blankets. The company also offers hardware solutions such as rugged tablets and laptops in addition to designing and developing power transfer and charging solutions.
The diversified holding company plans to issue 6 million shares, priced at $1.10 per share, of common stock at the public offering.
FORM Holdings Corp. (NASDAQ:FH) has also granted underwriters a 30-day option to purchase up to 900,000 additional shares of common stock to cover over-allotments. Roth Capital Partners will act as the sole manager of the offering.
Expected gross proceeds should be approximately $6.6 million before the deduction of underwriting discounts, commissions, and other expenses. The offering could generate approximately $7.6 million should the over-allotment option be exercised in full.
FORM Holdings Corp. (NASDAQ:FH) plans to use proceeds from the offering to open new XpresSpa locations as it looks to grow its footprint in the space. Part of the funds will also to be used for general corporate purposes as well as working capital.
Russell Index Listing
FORM Holdings Corp. (NASDAQ:FH) has seen its membership in the Russell Microcap Index confirmed as part of Russell Investments annual reconstitution.
“Our operational transition is nearly complete and we expect our improving operations, along with the addition to the Russell Microcap Index, will help increase our visibility within the investment community and ultimately enhance shareholder value as we communicate and execute on our strategic initiatives,” said Andrew Perlman Form Holdings CEO
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.