Quanergy Systems' stock dives 70% amid cash crunch, new stock sale - Silicon Valley Business Journal

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A planned stock sale to raise much needed cash seems to have sparked a sell-off in the lidar-maker's shares.

October was a rough month for Quanergy Systems Inc.

Even if it sells all the shares it hopes to in its stock offering, which is slated for Wednesday,"we will have less than three months of operating expenses on hand," it told potential investors."We will require additional capital to meet our financial obligations and support planned business growth, and this capital might not be available on acceptable terms or at all."Quanergy's stock closed trading Tuesday at less than 99 cents a share.

The company's shares plunged 68% on Monday alone and fell another 6% Tuesday. The moves came after its shares more then doubled Friday to $3.30 a piece. Even so, its stock is still down 24% from its Thursday closing price of $1.30 each.Quanergyit planned to raise $16.7 million by selling 9.8 million units — a combination of shares and warrants to buy additional stock — for $1.70 each. That price is little more than half of the company's closing price on Friday of $3.30 a piece.

 

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