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Huadi International (NASDAQ:HUDI) stock continued its rocky ride on Monday, tumbling 29% amid news that it had agreed to sell up to 3.5M of its shares at $25 per share.
Shares of the Chinese steel pipe maker opened at $12.99 before sliding to a low of $9.26 at around 12:40 p.m. ET.
The stock soared 243% last Thursday and another 70% on Friday in the wake of news that the company was in discussions with Chinese government officials about the establishment of an anode materials project for the production of clean energy batteries in China. The shares hit an all-time high of $192.88 during Friday’s session.
Huadi stock abruptly reversed course on Monday, however, plunging 91% amid news its had entered into an agreement with two institutional investors for a direct registered offering of 1M ordinary shares priced at $25 apiece.
On Tuesday, Huadi revealed in a filing that the purchasers had also been granted a 90-day option to buy up to 2.5M additional shares priced at $25 apiece.
Huadi held its US initial public offering in February 2021, raising around $25M.
Image and article originally from seekingalpha.com. Read the original article here.