The sinking stock once hit an all-time high of more than $25 per share with the help of short squeeze, now announced public offering 35Million shares when the stock is struggling below $8 per share.
“All of the shares are being offered by Clover Health. In conjunction with the offering, Clover Health intends to grant to the underwriters a 30-day option to purchase up to 5,250,000 additional shares of its Class A Common Stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Clover Health intends to use the net proceeds from this offering for working capital and general corporate purposes.”
Even the fundamental is looking great for Clover Health Investment, especially after their Q3 earnings, it is making investors in anguish by depreciating their current market shares. Diluting a stock is not a healthy sign of a good business and it could sink the CLOV stock even lower.
CLOV STOCK UPDATE: