Comstock Inc. (NYSE:LODE) shares tumbled 19.21% in after-hours trading to $2.44 on Tuesday.
Check out the current price of LODE stock here.
What Happened: The dip in stock of the Nevada-based company follows the company’s announcement of a $30 million public stock offering priced at $2.25 per share.
The offering consists of 13,333,334 shares of common stock, with gross proceeds expected to reach approximately $30 million before underwriting fees and expenses, according to the company’s press release issued on Tuesday. Titan Partners Group, a division of American Capital Partners, served as the sole bookrunner for the transaction.
Executive Chairman and CEO Corrado De Gasperis stated the company secured “fundamental support from leading institutional investors,” including participation from a long-only mutual fund, alternative asset managers, and global investment firms. The offering is expected to close on August 14, 2025, subject to customary conditions.
The offering was conducted under an effective shelf registration statement filed with the Securities and Exchange Commission in March 2025.
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The clean energy technology company’s stock has experienced significant volatility, trading in a 52-week range of $1.35 to $10.10 with a market capitalization of $88.87 million and an average daily volume of 361,720 shares.
Why It Matters: The fundraising eliminates all outstanding debt and positions the company with approximately $45 million in expected cash on hand. Comstock granted underwriters a 30-day option to purchase an additional 2 million shares to cover over-allotments.
The steep decline in stock value reflects investor concerns over potential dilution from the substantial equity raise, with the offering price representing a 25.5% discount to the stock’s $3.02 closing price.
According to the Benzinga Pro data, LODE dropped 62.30%, down 4.99%, before closing the regular trading session at $3.02.
Benzinga's Edge Stock Rankings indicates Comstock stock has a negative price trend across all time frames. Find out how the stock competes with other tech giants.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.