Shares of New Era Energy & Digital (NASDAQ:NUAI) dropped around 20% on Friday morning, giving back much of the 18% advance recorded in the previous session after the company disclosed a mixed securities shelf filing.
The filing with the U.S. Securities and Exchange Commission authorizes the company to issue up to $350 million in a range of securities, including common and preferred shares, debt instruments, warrants, units and rights. Any future offerings would be subject to prevailing market conditions, with specific pricing and terms to be set at the time of issuance.
The shelf registration provides the company with added financial flexibility, allowing it to access capital as needed. New Era Energy & Digital said it may issue the securities “from time to time in amounts, at prices and on terms to be determined by market conditions and other factors.”
The sharp swings in the stock over the past two trading days underscore investor sensitivity to the potential dilution associated with additional share issuance under the shelf registration.