What happened
The charge was weak with electric vehicle (EV) maker Sono Group (SEV 160.00%) on Wednesday, with the European company's stock plunging by over 16%. That fall came after the company announced a new secondary issue of its ordinary shares.
So what
On Tuesday, Sono Group divulged that it aims to launch a follow-on offering of 10 million ordinary shares. The company plans to grant the issue's underwriters, which include Cantor Fitzgerald and B. Riley Securities, an option to collectively purchase up to 1.5 million more.
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Sono Group aims to use the net proceeds of the issue to help fund the start of production of its Sion. This is a small EV car with one notable element that sets it apart from other EVs currently on the market -- it integrates solar panels throughout the body of the car to complement its existing battery power. Another interesting feature of the vehicle is its bi-directional charger that allows users to charge from another Sion.
Sono Group hasn't yet nailed down the timing of the stock issue. In its latest filing on the issue with the SEC, it wrote that this should occur "as soon as practicable after this registration statement becomes effective."
Similarly, the company has not yet priced the new shares.
Now what
Investors probably aren't encouraged by that ambiguity. It's likely, though, that they're more discouraged by the impending share dilution. According to data compiled by Yahoo! Finance, Sono Group currently has just over 70 million shares outstanding, so the upcoming issue would add a hefty 15% to that count.