Ramaco Resources Inc. (NASDAQ:METC) saw its stock decline by 14% following the announcement of a public offering priced well under the prior day’s closing level.
The coal and minerals company set the price for its underwritten public offering at $18.75 per share for 10.67 million Class A common shares, a steep discount to Wednesday’s closing price of $23.14. Ramaco anticipates raising roughly $200 million in gross proceeds before fees and expenses.
The company revealed that the offering size was increased beyond the original plan. Additionally, selling shareholder Yorktown Energy Partners granted underwriters a 30-day option to purchase up to $30 million more shares at the same discounted price.
The sizable gap between the offering price and the recent market value likely contributed to the significant drop in Ramaco’s stock, as current shareholders face dilution risk at a lower valuation.
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