Shares of Thumzup Media Corporation (NASDAQ:TZUP) dropped 30% in early Monday trading after the company unveiled plans for a public offering, later amending the deal to include warrants.
Initially, the digital asset aggregator and advertising technology disruptor announced a best-efforts public sale of its newly created Series D Non-Voting Convertible Preferred Stock. In a subsequent update, Thumzup altered the structure to offer common shares and, for certain investors, pre-funded warrants to purchase common stock.
The company said it plans to allocate the net proceeds toward “exploring the accumulation of cryptocurrencies and mining equipment, working capital, and general corporate purposes.” Management emphasized that the offering remains contingent on market conditions, with no guarantee on timing or final terms.
Dominari Securities LLC is acting as the sole placement agent for the transaction.
The steep share price drop reflects the typical market response to equity offerings, which can dilute existing shareholders’ stakes. The addition of warrants in the revised terms likely amplified selling pressure, as exercised warrants could lead to further dilution down the line.
Thumzup Media Corporation stock price
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