Shares of computer hardware company Nano Dimension (NASDAQ:NNDM) nose-dived on Monday. The stock fell as much as 24.6%, but as of 12:05 p.m. EDT today, it had trimmed its loss to about 19%.
The tech stock's decline follows news that the company is raising capital through a direct offering of its shares, which will dilute shareholders' ownership.
On Monday, Nano Dimension announced the sale of about 16.7 million of its American depositary shares (ADS) at a price of $3 each. That will help the company raise approximately $50 million before offering expenses.
Proceeds from the capital raise will be used for "working capital and for other general corporate purposes," management said in a press release on Monday morning.
The direct offering is expected to close on or about Wednesday, the company said. It follows a run-up in the company's stock price over the past three months, making this a much better time to raise capital than when the stock was below $1 earlier this year.